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
Bearish
Oil - US Crude
Mixed
Wall Street
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
Gold
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
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • The $SGD is driven by the Monetary Authority of Singapore, which manages exchange rate instead of short-term interest rates. Learn more on the SGD and how to trade it. Get your SGD market update from @ddubrovskyFX here:https://t.co/eWLM9XZs5Y https://t.co/HdiCLtSFre
  • #Bitcoin prices may see a pickup in volatility ahead of the 2020 halving as the #coronavirus pandemic threatens to disrupt cross-continental $BTC mining operations. Get your market update from @ZabelinDimitri here: https://t.co/BoH24MVf4P https://t.co/4bgTwNqVvG
  • (Weekly Outlook) The Japanese #Yen faced a mixed week against currencies such as the US Dollar, Euro, British Pound and Canadian Dollar. What is ahead for $USDJPY, $EURJPY, $GBPJPY and $CAD/JPY? - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/04/04/Japanese-Yen-Weekly-Forecast-USDJPY-EURJPY-GBPJPY-CADJPY.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/Flgbd5b2ag
  • Foreign exchange – or “#forex” – markets often pay close attention to politics and central bank policy. We offer a model for traders to gauge their impact on exchange rates. Get your market insight from @ZabelinDimitri and @CVecchioFX here: https://t.co/FbXc1Awu6a https://t.co/Qbhs4ndgPa
  • Why must financial market traders monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/AldbSctm9V
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/yF133btXFd https://t.co/Sjnr0iVgAf
  • Upside momentum stalls with the #DAX and #FTSE 100 vulnerable to testing lower levels as the economic backdrop deteriorates further. Get your #equities technical analysis from @JMcQueenFX here: https://t.co/BFIaXTfDcs https://t.co/q0Mso4zWlT
  • RT @iv_technicals: *TRUMP SAYS HE'D USE TARIFFS IF NEEDED TO PROTECT OIL INDUSTRY - BBG #OOTT #WTI $USO
  • After the pattern is composed with the closing of the signal candle, then you can look to the following candle to identify a clear bias and risk points. Learn how to apply this knowledge to a trading strategy here: https://t.co/uh3NwgHBVv https://t.co/yl4KUMNmUh
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia here: https://t.co/r3Ku0p9dw1 https://t.co/CU5vMilpLH
USD/CHF Runs into Resistance as USD Strength Abates

USD/CHF Runs into Resistance as USD Strength Abates

2020-02-21 18:00:00
Austin Sealey, Contributor
Share:

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 MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 1% 10% 4%
Weekly 35% -9% 12%
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

News & Analysis at your fingertips.