We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Real Time News
  • $USDCAD is down over 0.30% from yesterday's high to intraday lows https://t.co/OhAAnqQyuE
  • Breakout in $Gold runs all the way up to re-test of six-year-high... and then stalls. What a run https://t.co/X6RrmSGr1v
  • Manic Macro: USD/JPY Breaks Out, Gold Toes the Line, Oil Bulls Return https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/02/19/Manic-Macro-USDJPY-Breaks-Out-Gold-Prices-Toe-the-Line-Oil-Bulls-Return-JS.html https://t.co/BxN4CFf0OO
  • 🇨🇦 CAD Consumer Price Index (YoY) (JAN), Actual: 2.4% Expected: 2.3% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2020-02-19
  • 🇺🇸 USD Building Permits (MoM) (JAN), Actual: 9.2% Expected: 2.1% Previous: -3.7% https://www.dailyfx.com/economic-calendar#2020-02-19
  • 🇺🇸 USD Housing Starts (MoM) (JAN), Actual: -3.6% Expected: -12.0% Previous: 17.7% https://www.dailyfx.com/economic-calendar#2020-02-19
  • #DidYouKnow the global trade volumes dropped by close to 10% amid the Great Recession. Want to know your #tradewars history? Get it here: https://t.co/f4loFVimeY https://t.co/3TyNIUeS33
  • 🇺🇸 USD Building Permits (MoM) (JAN), Actual: 9.2% Expected: 2.1% Previous: -3.9% https://www.dailyfx.com/economic-calendar#2020-02-19
  • 🇺🇸 USD Housing Starts (MoM) (JAN), Actual: -3.6% Expected: -12.0% Previous: 16.9% https://www.dailyfx.com/economic-calendar#2020-02-19
  • 🇨🇦 CAD Consumer Price Index n.s.a. (MoM) (JAN), Actual: 0.3% Expected: 0.2% Previous: 0.0% https://www.dailyfx.com/economic-calendar#2020-02-19
An Intraday AUD/CHF Descending Channel is Creating Scalping Environment

An Intraday AUD/CHF Descending Channel is Creating Scalping Environment

2011-02-01 22:22:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

The AUD/CHF pair has been in a chopping descending channel dating back to late October, with the pair touching the range top and range bottom multiple times on its way to its current level, 0.94640. Commentary early today by RBA officials provided the fundamental boost needed for the AUD/CHF pair to rebound off of a resistance area between 0.93000 and 0.93500, a level tested but never been closed below since early September. With little in terms of economic data expected from either Australian or Switzerland over the next 36 hours, volatility onset by a strong fundamental presence is likely to be limited, setting up a swing trade within the three month channel the AUD/CHF has formed.

Key Technical Levels

2011.02.01_ScalpingEDITOR_body_audchf_6hr.png, An Intraday AUD/CHF Descending Channel is Creating Scalping Environment

Charts created using Strategy Trader– Prepared by Christopher Vecchio

The broader picture on intraday charts, starting with the 6-hour chart, is that, despite some tests of the upper bonds of the range, the AUD/CHF pair has been in a descending channel for the over 12-weeks now. The pair is expected to continue within this range for the foreseeable future, as deteriorating economic conditions in Australia as well as speculation that the Franc could be used as a safe-haven currency against a depreciating Euro limit the upside for the AUD/CHF. With the 20-SMA moving below the 50- and 100-SMA on daily charts, downside potential for the pair exists.

2011.02.01_ScalpingEDITOR_body_Picture_4.png, An Intraday AUD/CHF Descending Channel is Creating Scalping Environment

Charts created using Strategy Trader– Prepared by Christopher Vecchio

Key Support/ResistanceLevels to Watch

Pair

S/R

Level

Spot

Valid Since

Market Influence

AUD/JPY

Resistance

20-Day SMA

82.40

1/10/11

Low

GBP/USD

Support

200-Day SMA

1.54584

9/14/10

High

EUR/CAD

Resistance

100-Day SMA

1.36976

11/14/10

Medium

Quantitative Metrics

The AUD/CHF’s Slow Stochastic Oscillators on the 1-hour candlestick chart have crossed, with the %K at 41 and %D at 55, signaling a sell signal overall in the next few hours. The RSI is also rising, currently at 58, signaling additional strength in the near-term as it the pair is coming off of recently overbought levels earlier in today’s session following the RBA commentary. On the 15-minute chart, a clear channel has formed dating back to mid-January, and over the past week, buying and selling on overbought and oversold RSI levels has proven profitable. The 15-minute chart shows the RSI falling back towards oversold levels (signaling a buy), though chasing profits here is unadvisable. Accordingly, scalping 20 pips on an oversold RSI on the 15-minute AUD/CHF charts appears to manageable; the overall trend remains bearish for the AUD/CHF pair, however.

2011.02.01_ScalpingEDITOR_body_Picture_1.png, An Intraday AUD/CHF Descending Channel is Creating Scalping Environment

Charts created using Strategy Trader– Prepared by Christopher Vecchio

The 0.93000-0.93500 area, dating back to early September, proved to be strong support for the AUD/CHF, which promptly rebounded on RBA commentary following their decision to maintain the overnight cash rate at its current level of 4.75 percent. Nevertheless, with no market moving data coming out of Australia or Switzerland for the next 36 hours, volatility is expected to be lower with no fundamental catalysts on the horizon.

Volatility / Activity Indicators

EURUSD

GBPUSD

USDJPY

USDCHF

USDCAD

AUDUSD

NZDUSD

GBPJPY

EURJPY

ATR (14)

0.0152

0.0152

0.7350

0.0104

0.0076

0.0120

0.0086

1.3956

1.2589

ATR %

1.10%

0.94%

0.90%

1.12%

0.77%

1.19%

1.09%

1.06%

1.12%

5d - 20d SMA

-0.0322

-0.0160

0.4794

0.0151

-0.0023

-0.0028

-0.0080

-0.5581

-2.0079

Bollinger Band

0.1156

0.0780

2.0552

0.0459

0.0164

0.0235

0.0274

4.9971

7.8633

Implied Vol (1wk)

11.0000

9.7100

10.5500

10.9525

8.2400

12.0650

11.9700

11.2300

11.8800

Click For Additional Info On Scalping Strategies

To Discuss Scalping Strategies and Get Tips From Other Traders Visit The Scalping Forum.

Written by Christopher Vecchio, DailyFX Research.

To contact the author of this report, please send inquiries to: instructor@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.