My USDCHF call

This is a play based on technicals which I feel provides reasonably good risk-reward opportunity for the USDCHF.

From the daily chart above, we see two hanging man candlesticks formed on the 11 and 12 May. The bodies of the two bars are almost identical in height, and are completed by 'legs' at the bottom.

The legs indicate that there had been buying interest in the USDCHF since the 11 May even while bears are trying to push the pair lower. However, the bears could not force the issue and close the price near the lows, allowing space for the bulls to take over slowly.

Hence, I'm going with the flow and am staying on the side of the bulls.

My call for USDCHF until next Fri 22 May is:

Buy from 1.1062 (bottom of 13 May 09 candle)

Stop loss 1.0973 (lower than last low touched on the 13 May)

Take profit at 1.1188 (near lows touched in late Mar)