Never Sell A Monday Low?
- Cycle turn window coming up
- Support confluence favors counter-trend recovery
Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.
USD/CHF has come under renewed pressure over the past 24 hours to trade at its lowest level in almost two and a half years. Sentiment, not surprisingly, has turned rather negative on the exchange rate and most are now eyeing a deeper and immediate decline after the effect of the positive February US non-farm payrolls wears off. We are bit more cautious here (at least for the next couple of days) on the rate as an important cycle turn window related to the August 2011 low is seen on Monday/Tuesday. We suspect this could slow the decline and possibly even prompt a decent reversal. Key support levels to watch for a reaction are .8745, .8700 and .8665/80. Continued weakness (new yearly lows) after Tuesday would be very negative and further confirm the strength of the downtrend. Such a scenario would likely see weakness persist into the latter part of the month.
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Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risk in Coming Sessions:
LEVELS TO WATCH
Resistance: .8830 (Gann), .8880 (Gann)
Support: .8745(Gann), .8700 (Fibonacci)
Strategy: Buy USD/CHF
Entry: Buy USD/CHF at .8700
Stop: 1-day close below .8665
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail firstname.lastname@example.org. Follow me on Twitter @KKerrFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.