US Dollar Decline Subsides, Fed Rate This Week

US equities closed in positive territory. Analysts are talking the same language- a rate cut is expected on Wednesday. Whether it will be 25 or 50 basis points is unclear. The US dollar strengthened against the Swiss Franc after closing a gap from Sunday night's open and also made gains against the Yen as traders resumed with the carry trade.

I receive a weekly chart setups from a website mailing list I subscribe to, http://www.dailyfx.com. It's a subsidiary of the brokerage FXCM. Kathy Lien & Boris Schlossberg are analysts of this company and the main contributors to the DailyFX site. You can learn a lot from these two. In your learning, you'll come across content on Investopedia.com provided by either of these two and I've seen Boris on CNBC on more than one occasion.
Even though their not analysts from my brokerage, Forex.com, I still favor referencing their studies.


On the charts below, DailyFx recommended a low-risk long position in USDCHF. As always, I do my own analysis to confirm recommendations. Knowing the nature of this pair, I realize that when it bottoms out, it is a firm support especially when confirmed by previous lows on a large, daily or weekly, timeframe. Currently, I'm long 3 lots at 1.1630. It's been a slow grind up, but it has been limited in surrendering any ground.