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. See our updated Privacy Policy here.

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
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
More View more
Real Time News
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/AueigVsuk4
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/P1iOONG90N
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/UcleaZEAaW https://t.co/62bGLvt8fE
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:https://t.co/8DubboXsjv https://t.co/A0sIYo2iP1
  • Want to hear my thoughts on the US Dollar? Check out yesterday's recording with #AuzBiz hosted by @KaraOrdway on 'The Trade' We discussed a #USD index, Treasury yields, $USDJPY, $AUDUSD and $NZDUSD https://t.co/yxwquL1btp https://t.co/RtWjlN6kpv
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:https://t.co/Vnxi41lETt https://t.co/FyZuHNzsU3
  • Feels like the market has been front-running next week’s FOMC announcement, which will reveal updated dot plot projections. Expectations clearly set for a more hawkish shift in guidance. That said, if the Fed does not deliver, US Dollar bulls could be disappointed. $USD $DXY https://t.co/o2v6ibac3L
USD/CHF Technical Analysis: Range Breaks into Megaphone Pattern

USD/CHF Technical Analysis: Range Breaks into Megaphone Pattern

James Stanley, Senior Strategist

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

Talking Points:

  • USD/CHF Technical Strategy: Short-term range seeing support break; intermediate-term trend still bullish.
  • USD/CHF continues to show range-like qualities with support and resistance defined by various Fibonacci levels.
  • SSI - If you’re looking for trading ideas, check out our Trading Guides. And if you want something more short-term in nature, check out our SSI indicator.

In our last article, we looked at the range that had begun to build in USD/CHF as price action remained very near a series of longer-term Fibonacci values. The level at .9948 was especially interesting, as this is the 38.2% retracement of the secondary move in the pair, and this ended up setting the swing-high in USD/CHF just a few days after that last article.

But price action stalled at that Fibonacci retracement, and later put in a ‘lower-high,’ before ultimately breaking through previous support at .9887, which had done a fantastic job of catching support in that previous range. This increasing range of prices on both sides of the previous zone brings on a ‘broadening pattern’ that is often called a megaphone. The megaphone will often show up as a range transitions to a breakout as traders test support and resistance boundaries.

Traders can use this pattern to highlight a potential breakout in the pair as the range appears to finally be giving way. With Non-Farm Payrolls less than a couple of days away, this could be ample opportunity for traders to finally leave that prior range in the dust.

To trade the megaphone, traders can look for a break on either side of the formation in the effort of anticipating the new directional trend. The current structure in USD/CHF has showed a recent support break followed by short-term resistance showing at that prior support level of .9887. But before triggering short positions, traders can look for a break below .9847 to indicate continuation potential. If .9847 gives way, traders can then look for resistance around old support, such as .9780 (prior swing low) or .9887. On the upside, traders would likely want to wait for a confirmed break above .9960; at which point they can look to buy ‘higher-low’ support after a fresh higher-high comes into the equation.

USD/CHF Technical Analysis: Range Breaks into Megaphone Pattern

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