News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
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
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • 🇪🇸 Unemployment Change (FEB) Actual: 44.4K Previous: 76.2K https://www.dailyfx.com/economic-calendar#2021-03-02
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.28% France 40: -0.30% Germany 30: -0.30% Wall Street: -0.41% US 500: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/D4QJ0kGpbS
  • Heads Up:🇪🇸 Unemployment Change (FEB) due at 08:00 GMT (15min) Previous: 76.2K https://www.dailyfx.com/economic-calendar#2021-03-02
  • #Bitcoin, #Ethereum Forecast: BTC/USD, ETH/USD Bullish Reversal at Hand? - https://www.dailyfx.com/forex/market_alert/2021/03/02/Bitcoin-Ethereum-Forecast-BTCUSD-ETHUSD-Bullish-Reversal-at-Hand.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $BTC $ETH $BTCUSD $ETHUSD https://t.co/Pdgnmg5zIV
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/xaTWTOPNgw
  • 🇩🇪 Retail Sales YoY (JAN) Actual: -8.7% Expected: 1.3% Previous: 2.8% https://www.dailyfx.com/economic-calendar#2021-03-02
  • 🇩🇪 Retail Sales YoY (JAN) Actual: -8.7% Expected: 1.3% Previous: 1.5% https://www.dailyfx.com/economic-calendar#2021-03-02
  • 🇬🇧 Nationwide Housing Prices YoY (FEB) Actual: 6.9% Expected: 5.6% Previous: 6.4% https://www.dailyfx.com/economic-calendar#2021-03-02
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/zA96KRFLyW
  • Heads Up:🇬🇧 Nationwide Housing Prices YoY (FEB) due at 07:00 GMT (15min) Expected: 5.6% Previous: 6.4% https://www.dailyfx.com/economic-calendar#2021-03-02
USD/CHF Runs into Resistance as USD Strength Abates

USD/CHF Runs into Resistance as USD Strength Abates

Austin Sealey, Contributor

USD/CHF Talking Points:

  • Both the US Dollar and USD/CHF are coming off of major monthly highs.
  • USD/CHF and USD had stretched into overbought territory according to the relative strength index (RSI) on the daily chart.

US Dollar Comes Off of Fresh Multi-Year High

For much of last year, USD/CHF remained in a range. But, as the door opened into December, sellers began to make way and price action started on a series of lower-lows and lower-highs that continued through the 2020 open. After finding resistance at the price of parity in early-December, sellers took over and drove into the 2019 close; after a bit of extension in the first two weeks of 2020 trade, a quick pullback found lower-high resistance at the .9750 psychological level.

USD/CHF BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 2% 12% 5%
Weekly -18% 10% -10%
What does it mean for price action?
Get My Guide

That resistance zone held multiple topside tests through the February open until, eventually, buyers were able to break-free to a fresh monthly high. That theme largely continued in USD/CHF price action as it tested the .9850 level on the chart. As the pair is now over 70 pips off of monthly highs, the .9750 psychological level is back in sight.

USD/CHF Daily Price Chart

USDCHF Daily Price Chart

Chart Prepared by Austin Sealey; USD/CHF on TradingView

Taking a closer look at the four-hour chart, there is confluent resistance area just above recent price action. The .9850 level came into play as key support on major down moves in Q3 2019 as seen above, and currently marks the top of the February bullish run in USD/CHF. Also at this price level is a major 0.382 Fibonacci level and trendline resistance that ran into recent topside wicks prior to the selloff.

USD/CHF Four-Hour Price Chart

USDCHF Four-Hour Price Chart

Chart Prepared by Austin Sealey; USD/CHF on TradingView

Generally speaking, the Swiss Franc has put in a strong start to 2020. In the same time period, from January 1st to January 31st, the US Dollar Index rose over 1.0%, USD/CHF fell roughly 0.45%. This is a major contradiction that highlights how the Swiss Franc was generally stronger than the US Dollar in that observed time period. Also, important to note is that USD/CHF is up about 2.0% off of January 1st lows while currencies like the Euro, Kiwi and Yen have all fallen by at least 3.5% against the Dollar.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Austin Sealey
Traits of Successful Traders
Get My Guide

With a US Dollar that had stretched into overbought territory and a USD/CHF pair that found resistance, there was an interesting setup for US Dollar weakness. However, the question is now what’s next? As the pair eyes the .9750 psychological level once again, the big question is whether sellers can continue to drive lower-lows and lower-highs or, whether buyers will continue the January trend back towards the .9900 and parity figures.

--Written by Austin Sealey, Market Analyst for DailyFX.com

Contact and follow Austin on Twitter @AustinKarlFX

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

DISCLOSURES