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
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
Oil - US Crude
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
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
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇦🇺AUD: 0.29% 🇨🇦CAD: 0.10% 🇬🇧GBP: 0.06% 🇨🇭CHF: 0.06% 🇯🇵JPY: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/OODkBySEaS
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: 0.66% Wall Street: 0.42% FTSE 100: -0.13% France 40: -0.28% Germany 30: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0PTPoUF2Jz
  • #Gold has slipped to its lowest level since Tuesday today. After meeting resistance around 1,795 this morning, the precious metal fell back to trade near the 1,770 level. $XAU $GLD https://t.co/tOiSk0n6t5
  • Biden’s proposed tax hike sees investors unload profitable assets. Bitcoin intensifies losses, falls below $50,000. Get your $btc market update from @Daniela here:https://t.co/pkHFvFotbz https://t.co/1R7T4HpfQX
  • With the US data beating expectations, we have all of the major developed world economies reporting April PMIs with a significant improvement in economic activity for the current month. Seems only black swans and regulations can stop the train now... https://t.co/HpOW5ul5YW
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.92% Gold: -0.24% Silver: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ck2iRms5Hp
  • Heads Up:💶 ECB President Lagarde Speech due at 14:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-04-23
  • $EURUSD is currently trading back above the 1.2060 level today, around its highest point since early March. This is the third time of the week that the pair has tested the 1.2060 level. $EUR $USD https://t.co/HUbjgKOhCR
  • 🇺🇸 New Home Sales MoM (MAR) Actual: 20.7% Expected: 12% Previous: -16.2% https://www.dailyfx.com/economic-calendar#2021-04-23
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.38%, while traders in US 500 are at opposite extremes with 66.76%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/3GlR9tqywl
USD/CHF Technical Analysis: If You Want to Get Long USD – Look at Swissy

USD/CHF Technical Analysis: If You Want to Get Long USD – Look at Swissy

James Stanley, Senior Strategist

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

Talking Points:

  • USD/CHF Technical Strategy: Flat. Top-side reversal setup identified.
  • USD/CHF has faced precipitous selling after setting a new five-year high two weeks ago.
  • The selling in Swissy has been severe, but given the veracity of the previous up-trend, the motive for continued bullishness could compel traders to look at top-side reversal formations in the coming week.

In our last article, we looked at the continued bullishness in USD/CHF as the Swissy had just set a new five-year high. And as we had advised (and as we had also looked at in the previous article), traders should exercise caution if looking to press the long side of USD/CHF.

In the past two weeks, USD/CHF has seen significant selling as we’ve fallen below numerous support levels (many of which were prior resistance on the way up). Much of this drive has been USD-weakness as we near a pivotal FOMC meeting in which much of the world is expecting the Fed to kick rates higher. But nothing fundamentally has changed… The Fed is still expected to hike rates, and the Swiss National Bank is still looking to weaken their own currency. And while relying on the Swiss National Bank may be a disastrous plan, the technical setup for top-side trend resumption is available.

For traders that want to get long USD ahead of FOMC, this could be a prime way of doing so. Today’s bar isn’t yet closed, but thus far we’re seeing a Doji formation just above a long-term Fibonacci support value at .9781. This is also where we’d seen prior resistance come in before that prior up-trend hit its apex. Should today’s low hold, then we’d have the possibility of playing a top-side reversal ahead of a heavy week of US news, and this could be attractive for strong risk-reward plays.

Traders can look at placing stops below the .9781 support level, which is the 76.4% retracement of the ‘secondary’ move in USD/CHF, taking the 2015 high to the 2015 low. For those that want to treat the position a little more conservatively, they can investigate stops below .9749, which is the 76.4% retracement of the previous major move in the pair (which was just validated by resistance showing at the 1.618 extension).

This could open the door for targets at .9948 (the 61.8% retracement of the ‘big picture move’), followed by parity (psychological support/resistance), then 1.0077 (the 27.2% extension of that prior major move), 1.0239 (previous 2015 high) and then 1.0300 (most recent swing high + 61.8% extension of prior major move). This could allow a top-end 1-to-3.5 risk-reward ratio with that wider, more conservative stop, and when sitting ahead of a major onslaught of data, such a setup could be very attractive.

USD/CHF Technical Analysis: If You Want to Get Long USD – Look at Swissy

Created with Marketscope/Trading Station II; prepared by James Stanley

--- Written by James Stanley, Analyst for DailyFX.com

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

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES