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Scalping the USDCHF Correction- Buying Dips Above 0.9540

Scalping the USDCHF Correction- Buying Dips Above 0.9540

2013-05-20 19:44:00
Michael Boutros, Strategist
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USDCHF Daily Chart

Forex_Scalping_the_USDCHF_Correction_Buying_Dips_Above_0.9540_body_Picture_2.png, Scalping the USDCHF Correction- Buying Dips Above 0.9540

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • USDCHF has now achieved the 100% & 1.618% Fibonacci Extensions from Feb & April rallies
  • Key Resistance region 9720-9750 – aforementioned Extensions and Channel Resistance
  • Breach exposes daily objectives at 9860-9878 and 9958-9970
  • Broader bias remains bullish above 9540 (key support on daily close basis)
  • Daily RSI rejection at 70 suggests near-term correction may be underway
  • Scalps look cautiously lower, medium-term corrections to be bought

USDCHF Scalp Chart

Forex_Scalping_the_USDCHF_Correction_Buying_Dips_Above_0.9540_body_Picture_1.png, Scalping the USDCHF Correction- Buying Dips Above 0.9540

Scalp Notes: Bottom Line: Although our longer-term bias remains weighted to the topside, the pair may continue to correct lower in the near-term, offering nimble short-scalps on breaks of support and favorable medium-term long entries lower. Intra-day RSI has remained bearish since the start of the week with a breach above trendline resistance dating back to last week’s high offering further conviction on long entries. The broader outlook remains weighted to the topside so long as price respects the 9540 support threshold.

*We will remain flexible with our bias with a break above 9760 eyeing subsequent resistance targets. It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases. Use this app to distinguish the various trade sessions.

Key Threshold Grid

Entry/Exit Targets

Timeframe

Level

Significance

Resistance Target 1

30min

9670

Soft Resistance / Pivot

Resistance Target 2

30min

9705

Soft Resistance / Pivot

Bearish Invalidation

Daily

9750 - 9760

100% Fib Ext / Last Week’s High

Break Target 1

30min / Daily

9800

Big Figure

Break Target 2

Daily

9830

200% Fib Extension

Break Target 3

30min / Daily

9860

88.6% Retracement

Break Target 4

30min / Daily

9878

123.6% Fib Extension

Break Target 5

30min

9910

Soft Resistance / Pivot

Break Target 6

Daily

9958 - 9967

138.2% Ext / July High

Support Target 1

30min / Daily

9640

23.6% Fib Retracement

Support Target 2

30min / Daily

9608

61.8% Fib Retracement

Support Target 3

Daily

9565

38.2% Fib Retracement

Bullish Invalidation

Daily

9542

618% Fib Extension

Break Target 1

30min

9504

50% Fib Retracement

Break Target 2

30min

9475

Soft Support / Pivot

Average True Range

Daily

102

Profit Targets 23-25pips

Reviews today’s Scalp Webinar for further insights and current trade setups

For updates on this scalp and more setups follow him on Twitter @MBForex

---Written by Michael Boutros, Currency Strategist with DailyFX

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

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