FX MoneyMap - does the market hold your view?

2 days - half a mil

Below is the setup for USDCHF about 45 minutes before CPI data. This is a classic vanilla trade. Four red columns to the down side from 1.1525. No one, in their right mind, is going to take a position before numbers. I waited to see which would move first. In fact it was USDJPY that cracked. As it moved down, I went short USDCHF - see "2 days - half a mil" link.

Before taking a position, I checked the 30 minute chart to make sure the market held the same view as me i.e. USDCHF was offered and there was plenty of overhead resistance to control the risk.

When I first identified the USDCHF opportunity the dynamic fib level was at 1.1525. About an hour after numbers, the level was 1.1520. That's why it's called 'dynamic'. I sold at 1.1517 and covered at 1.1510.

Regards
Morty