Key Technical Levels
Charts created using Strategy Trader - Prepared by John Rivera
It is a coincidence that we have seen bearish momentum slow as the pair approaches parity. The psychological level offers major support potential and may require a significant catalyst for a break below. The SNB may be forced into action as Franc strength will decrease the attractiveness of the country’s exports. The potential for intervention may limit bears conviction leading to further consolidation. A descending short-term channel is offering target levels for scalpers to enter and exit positions.
Charts created using Strategy Trader - Prepared by John Rivera
Quantitative Metrics
The USD/CHF has seen its ATR shrink to 107 pips as the pair has started to settle into a narrow range. Its daily volatility ranks near the bottom of the most traded pairs and accounts for 1.06% of the spot, increasing its attractiveness as a scalping target. However, the Bollinger band width has increased to 583 pips as it has been in an extended bearish trend. At 583 pips the pair’s variance ranks at the top of the majors, a red flag as one way price action increases potential for losses. Overall, one week implied volatility levels are on the decline which is a sign that growth concerns are easing and potentially quieting markets.
Charts created using Strategy Trader - Prepared by John Rivera
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To discuss this report or be added to the email list, contact John Rivera. Currency Analyst: jrivera@fxcm.com
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