USD/CHF Caution Warranted at These Levels
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
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FOREXAnalysis: Bigger picture – “the USDCHF rallied for 22 weeks off of the 2011 low (8/12/11 to 1/13/12) and has traded sideways for the last 73 weeks. Consolidation has lasted 3.3 times (73/22) longer than the previous trend. The recent low was registered at the trendline that extends off of the October 2011 and 2013 lows and just 8 pips below the open for the year. The USDCHF has made important lows since 2012 in a fashion similar to what is happening now. That is, price has dropped sharply into the lows and made an inside week the next week.” Near term, the move up is getting stretched and nearing resistance from .9687. We may have an opportunity to buy a dip later in the month.
FOREXTrading Strategy: Flat (longs exited last week)
LEVELS: .9529 .9566 .9607 .9687 .9757 .9781
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