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
Mixed
Oil - US Crude
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
Wall Street
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
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Heads Up:🇦🇺 Ai Group Services Index (APR) due at 22:30 GMT (15min) Previous: 58.7 https://www.dailyfx.com/economic-calendar#2021-05-06
  • The US Dollar is still struggling against most ASEAN currencies. USD/SGD remains downside-focused despite recent gains. USD/THB is eyeing a triangle. USD/IDR and USD/PHP may point lower. Get your market update from @ddubrovskyFX here:https://t.co/6Nvvmz8h6d https://t.co/dX69A341oc
  • US Dollar Outlook: USD/CAD Volatility to Rise, Jobs Data Looms -via @DailyFX Link to Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2021/05/06/us-dollar-outlook-usd-cad-volatility-to-rise-jobs-data-looms.html #NFP $DXY $USDCAD https://t.co/OIYZ2YXxLK
  • Heads Up:🇺🇸 Fed Kaplan Speech due at 22:05 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-06
  • The Federal Reserve discussed the vulnerability of asset prices should appetite change. Get your market update here: https://t.co/0nAEKEX1eh https://t.co/BD24UcDeyT
  • EUR/USD stronger amid broad USD weakness on Thursday $EURUSD https://t.co/h042KoSyuA
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.98% 🇨🇭CHF: 0.60% 🇦🇺AUD: 0.49% 🇳🇿NZD: 0.26% 🇯🇵JPY: 0.11% 🇬🇧GBP: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/4u2cNfSmLn
  • RT @BrendanFaganFx: Federal Reserve Hints at Potential Declines in Asset Prices, Calls for Hedge Fund Transparency #Fed #FederalReserve #F…
  • Both EUR/JPY and EUR/USD are hovering near multi-year downtrend downtrends, while EUR/GBP may still have more room to the topside. Get your $EUR market update from @CVecchioFX here:https://t.co/2SYCKwz8hz https://t.co/tj6UQUDzRL
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 3.18% Gold: 1.61% Oil - US Crude: 0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/mo9LS3teJl
USD/CHF Technical Analysis: Up-side Capped by Trend-Line

USD/CHF Technical Analysis: Up-side Capped by Trend-Line

James Stanley, Senior Strategist

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/CHF Technical Strategy: Flat
  • USD/CHF has run into trend-line resistance on the top-side of the symmetrical wedge discussed in our last piece.
  • USD/CHF continues to remain confined within previously-established Support and Resistance levels as outlined below.

In our last article, we examined the recent resistance being tagged in USD/CHF as the pair threatened to break above a down-ward sloping trend-line that made up the top-side of a symmetrical wedge congestion formation. Since that article, prices staged a quick break of Fibonacci resistance at .9781, only to be thwarted by the longer-running trend-line. We’ve seen price action react off of this trend-line to move down to prior support at the .9681 zone, which had provided numerous instances of support and resistance over the prior three months.

The current posture in USD/CHF is congested; with a hint towards a bullish-breakout should the down-ward sloping trend-line clear. This trend-line currently projects at .9825, and should this level give way, then traders can look to buy support with targets cast towards .9900 (minor psychological level and the six-month-high in the pair), and then parity (major psychological level).

The long side may also be conducive to a shorter-term, range-based type of strategy by looking to the .9681 support level. This is the 50% Fibonacci retracement of the ‘big picture’ move in USD/CHF, taking the 2008 high to the 2011 low. Traders could look to place stops below this support with targets at .9748 (76.4% Fib retracement of the most recent major move, taking the August high to the August low), .9781 (76.4% Fib retracement of the ‘secondary move’ taking the 2015 high to the 2015 low), and then .9825 (projected trend-line resistance).

The short-side of USD/CHF could look more attractive for intermediate-to-longer-term plays with the persistent resistance being seen from .9780-.9900 over the past six months. For this longer-term idea, traders would likely need to focus on targets below .9600 to offset the wider stop values. Potential support at .9577 (50% Fib retracement of the most recent major move), and then .9500 could prove attractive, as this is a confluent level of support (major psychological level, 61.8% of the secondary move and 38.2% of the most recent major move). Should .9500 clear, .9400 becomes a level of interest (23.6% of the most recent major move), and then .9350 comes in focus (projected support trend-line).

USD/CHF Technical Analysis: Up-side Capped by Trend-Line

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

DISCLOSURES