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Talking Points:
- USD/CHF Technical Strategy: Short, one target remains at .9441. New short identified.
- If you’re looking for trade ideas, check out our Trading Guides; they’re free.
- SSI remains stretched in Swissy by a tune of >+2.55-to-1 and this is bearish. Click here to learn more about SSI.
Over the past two articles we’ve been plotting a re-entry into USD/CHF. Two articles ago we outlined the zone of potential resistance from .9660-.9700 that may be interesting for fresh short positions. And in our most recent article, we tapped the breaks as the price action that got us into that resistance zone was exuberantly strong, printing a Marubozu candlestick that traders should be cautious towards fading.
But as we outlined, should price action have stalled in this vicinity over the next couple of days, the short entry could become attractive given the realization of resistance in this price zone. That’s precisely what we had over the past two days of price action with Doji s printing on the daily chart, and this opens the door for short-side swing positions lower.
Traders looking to get short USD/CHF can look to post stops above the batch of resistance between .9660 and .9700, with targets set towards previous support levels of .9550 (38.2% Fibonacci retracement of the most recent major move, shown in maroon below), .9500 (major psychological level) which is confluent with the 27.2% extension of the prior major move, followed by .9441 (shown in blue below, 61.8% of the ‘big picture’ move, taking the 2005 high to the 2011 low), and then .9398 (shown in orange below, 50% of the secondary move, taking the 2010 high to the 2011 low).
Created with Marketscope/Trading Station II; prepared by James Stanley
--- Written by James Stanley, Analyst for DailyFX.com
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