The USDCHF based at a key support target and it led to bounce. What does that tell you?


In a post and video yesterday on USDCHF, I highlighted a key support zone between 0.7888 and 0.7903 that was being tested—and holding.

At the time, I noted that this area had become a critical battleground. Buyers were leaning against it on the first test, helping to stall the decline. Why? Because it offered something every trader needs: a clearly defined level of risk.

When risk can be defined and limited, traders can make a simple decision—risk a little to potentially make more than a little.

Importantly, traders didn’t know what was coming next. They didn’t know what Trump would say, how the IRGC might respond, or that oil prices would surge toward $110. The fundamental story was uncertain. But the technical story was clear: a level where risk could be managed.

That’s the key distinction. The story we don’t know often drives fear and hesitation. The story we do know—through technical levels—provides structure and discipline.

By leaning against the 0.7888–0.7903 zone, traders gave themselves a defined risk. As long as that support held, the potential remained for a move higher—and an opportunity to profit from that shift.

In the video, I walk through the technical factors that helped shape the market’s behavior. Especially in periods of heightened uncertainty, technicals act as a roadmap—removing emotion, minimizing guesswork, and anchoring decisions around risk-defined levels rather than unpredictable headlines. I also speak to “what’s next?”



Source link

Categories:

Leave a Reply

Your email address will not be published. Required fields are marked *

Update cookies preferences