USDCHF Long Trade- Trading The Fundamentals With The Technicals
If you understood the fundamentals you would've bought the USDCHF after the fall on Friday, why? Because while we had beautiful technicals for the the sell going down we also had the passage of the US tax bill which if you understood the fundamentals you know would result in a rally in the USD. So many traders lost all their profit from the fall because they were unaware of the fundamentals, don't be unaware learn to trade both.
Now one of the first steps to trading fundamental analysis is understanding the cause of the most recent price move, now in this case the move down was cause by political news. News that Flynn was prepared to testify against President Trump, this pushed the dollar lower and presented a great opportunity to buy the dollar at a lower price. Political news normally only create short term market sentiment as the market is mostly focused on economic news that indicate an increase in production or an increase in inflation.
Therefore a trader that understands both the technical and fundamental and knew that we have the US tax bill that would be passed shortly would be looking to buy the dollar at a good price.
From the chart you can see that we have prices falling into the support zone and we have the completion of an AB=CD near the backside of the trend line. You could also draw your fibs and add indicators for more convergence. This is an example of trading the fundamentals with the technicals and although there is a lot more to trading fundamenatal analysis this is a good example.
Now one of the first steps to trading fundamental analysis is understanding the cause of the most recent price move, now in this case the move down was cause by political news. News that Flynn was prepared to testify against President Trump, this pushed the dollar lower and presented a great opportunity to buy the dollar at a lower price. Political news normally only create short term market sentiment as the market is mostly focused on economic news that indicate an increase in production or an increase in inflation.
Therefore a trader that understands both the technical and fundamental and knew that we have the US tax bill that would be passed shortly would be looking to buy the dollar at a good price.
From the chart you can see that we have prices falling into the support zone and we have the completion of an AB=CD near the backside of the trend line. You could also draw your fibs and add indicators for more convergence. This is an example of trading the fundamentals with the technicals and although there is a lot more to trading fundamenatal analysis this is a good example.
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