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
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
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/1TiEWCbJ6t
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/fN2mfHgpON
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your market update from @DanielGMoss here:https://t.co/qxQwHgD9Ey https://t.co/ym73tgtHLn
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:https://t.co/HuXPXu5PFU https://t.co/ytHqOoHnxQ
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:https://t.co/OMNoNHn2vZ https://t.co/155l4SQU6P
  • Will the Swiss Franc find reprieve after recent losses against the Canadian and New Zealand Dollars as NZD/CHF and CAD/CHF uptrends face key chart barriers? Find out from @FxWestwater here:https://t.co/c89gcaNhTt https://t.co/vkLRsG8KEn
  • The Australian Dollar may be at risk of losses against the New Zealand Dollar after an unexpectedly high NZ inflation reading sent AUD/NZD towards challenging short-term rising trend support. Get your $AUD market update from @ddubrovskyFX here:https://t.co/JoaUMTv80S https://t.co/Hl4I8Gl7Ez
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/6lPNDoWZAw
  • The gold price rebound keeps XAU/USD within the confines of the August downtrend. From a trading standpoint. Get your $XAUUSD market update from @MBForex here:https://t.co/B3Jct6mIBD https://t.co/gHAtO2jcrp
  • Gold recovered from a steep sell-off this morning to finish the day just lightly lower $XAU $USD https://t.co/lkcyL8gts9
USD/CHF Technical Analysis: Range Breaks into Megaphone Pattern

USD/CHF Technical Analysis: Range Breaks into Megaphone Pattern

James Stanley, 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