Forex Exotic Pairs – Long Term Strategy with Positive Swap

I am looking at this Forex Exotic Pair that has been in a nice trending mode. Today I see another opportunity for a consideration, especially in the direction that offers positive swap.

What is positive swap?

In forex trading, “swaps rates” refer to the interest rate differential embedded in currency trades. To put it more simply, consider how a forex trade works: you borrow one currency to buy another. For instance, if you are buying EUR/USD, you are borrowing US dollars, and with the proceeds, buying Euros. In doing so, you are paying interest on the US dollars you borrow, but earning interest on the Euros you bought.

So for a trade like USD/CNH, it’s a positive swap trade. That is, everyday of shorting USD/CNH, you receive extra money from the differential interest


Axitrader swap rate

Support/Resistance for USD/CNH

Marked in red in chart below see see that price has now retraced to


Support resistance levels

Price resisted by boxes low


Boxes and levels

Lower timeframe maps 1234, F6 shown

Due to volatility of this pair, I am thinking of a more conservative approach of letting price retrace to resistance again. However, there is no assurance this retracement would happen



Price behaving in an ED channel

If price is to slide along this ED channel, then the low of ED could be a support point. Otherwise, above chart that I marked in green will be potential support levels.


ED channel

#tflow wk 46/1 USDCNH below F6 6.1210 on D1 has S 6.1030 1.0760

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