USDCHF Trade Idea Oversold 60M

USDCHF reversal watch 15DEC08  (click to view graph) USDCHF has been falling on recent dollar weakness and has been oversold for a while.  We are far away from the 62.  Watch for colsolidation and break back towards the 62 and 800 MA’s on the 1HR.  This is really just a watch and wait right now.  No signals are being given, it just feels like it’s been trending down too fast and ready for a pullback.  Notice the consolidation area at 1.1557.  I would consider shorting if it broke convincingly below this point for a 50 to 100 pip trade target but low leverage and scaling in/out would be how I would play this one.

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