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
Oil - US Crude
Bearish
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
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
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
USD/JPY
Mixed
More View more
Real Time News
  • The dispute between the Federal Reserve and the Treasury Department concerned economists and government officials last week. Traders, however, appeared unfazed as U.S. equity markets proceeded to higher ground. Get your market update from @FxWestwater here:https://t.co/DKK7WWHKlu https://t.co/qxKvC8FAVd
  • The British Pound is eyeing a push to fresh yearly highs against the US Dollar. However, various technical setups suggest GBP could lose ground to JPY, EUR and NZD in the near term. Get your $GBP market update from @DanielGMoss here:https://t.co/NSUnZnPb4Q https://t.co/RuBAAWS37w
  • Deadline on TikTok sale on hold as talks continue with the U.S - BBG
  • Australian Dollar May Extend Gains Despite Escalating China Trade Tensions - https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2020/12/05/Australian-Dollar-May-Extend-Gains-Despite-Escalating-China-Trade-Tensions.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $AUD $AUDUSD https://t.co/dvwlnImvDl
  • IGCS hints that gold prices may reverse higher as the S&P 500 aims for new highs. Things are looking a little bit more choppy for the growth-linked Australian Dollar. Get your $AUD market update from @ddubrovskyFX here:https://t.co/xiaQOr5D7D https://t.co/ZIwVyai2m2
  • The US Dollar technical outlook remains broadly bearish against ASEAN currencies like the Singapore Dollar, Indonesian Rupiah, Malaysian Ringgit and Philippine Peso. Where to from here? Find out from @ddubrovskyFX here:https://t.co/ijSi1wlLpQ https://t.co/k34HQK8UXU
  • San Francisco issues new stay-at-home order for residents - Reuters via BBG
  • Productive procrastination = you have a list of tasks in varying degrees of importance and you put the most important and high-priority item on the bottom but still need to feel and be productive so you do other tasks while avoiding the thing u need to do the most. Familiar?
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.61% 🇬🇧GBP: -0.12% 🇨🇭CHF: -0.13% 🇪🇺EUR: -0.22% 🇯🇵JPY: -0.34% 🇳🇿NZD: -0.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/OgYcNSUCI2
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Silver: 0.59% Gold: -0.10% Oil - US Crude: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Jc0b1GCn7D
USD/CHF Technical Analysis: Stubborn Support Urges Caution for Shorts

USD/CHF Technical Analysis: Stubborn Support Urges Caution for Shorts

2016-04-06 17:20:00
James Stanley, Strategist
Share:

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

In our last article we looked at another short setup in USD/CHF off of the .9948 Fib level, which is the 38.2% retracement of the secondary major move in the pair, taking the 2010 high to the 2011 low (shown in orange on the below chart). And it took a little while to develop, but since we’ve seen massive USD weakness develop, finally breaking below the upward sloping channel that had started in May of 2015.

The primary obstacle in the setup at current is yet another Fib level that’s continuing to prove stubborn to bears. This is the 38.2% retracement of the most recent major move (shown in maroon below, taking the May 2015 low to the November 2015 high). This support has quelled the declines in Swissy on 3 of the last 4 trading days, and this is enough evidence of a potential short-term low to urge caution to short sellers.

More attractive for short-side setups would be looking to the prior support zone for subsequent selling positions. Should price action find resistance in the zone between .9660 (the February 2016 low) to .9700 (the 50% Fib of the most recent major move), traders could look at short-side entries in the direction of the predominant trend (lower). Traders can use price action to trigger the position by looking for an extended top-side wick in this zone, indicating that sellers may be reacting. This could open the door for profit targets at this current level of support at .9550, followed by .9500 (major psychological level), and then .9400, which is just 2 pips above the 50% retracement of the secondary major move in the pair.

USD/CHF Technical Analysis: Stubborn Support Urges Caution for Shorts

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