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
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
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/M9isuvnzqF
  • The British Pound is giving back some of its multi-month gains with some pairs testing notable support despite a positive fundamental backdrop. Get your market update from @nickcawley1 here: https://t.co/6Ct5R0H41F https://t.co/c4rXmMjMrv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/4dhCP5pnxM
  • Gold is facing the neckline of a Double Bottom Pattern after bouncing off a confirmed longer-term trendline. Is a bullish reversal in order? Get your market update from @FxWestwater here: https://t.co/kLXZewWBMd https://t.co/w1Nu0z569m
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/Gn41XsGktg
  • Rollover is the interest paid or earned for holding a currency spot position overnight. Learn how to earn rollover interest on your open positions here: https://t.co/SRsG8CxjEn https://t.co/2AR1qgx0tz
  • The New Zealand Dollar is in a tricky spot. On one hand, rising stocks can propel NZD. On the other, a dovish RBNZ ahead could cool bond yields as the government tackles soaring housing costs. Get your market update from @ddubrovskyFX here: https://t.co/5rjm2gr3EL https://t.co/aLwhWHMPqz
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/obH0RFLKhC
  • It was a big Q1 for $USDJPY but so far Q2 has been a far different tone. Which side will prevail? Get your market update from @JStanleyFX here: https://t.co/TxlD3zoglZ https://t.co/rUQnokAx30
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/ycjWjCETQJ
USD/CHF Technical Analysis: Bear Flag or Bullish Reversal?

USD/CHF Technical Analysis: Bear Flag or Bullish Reversal?

James Stanley, Senior Strategist

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

Talking Points:

Last week we warned of a deeper retracement in the prior up-trend of USD/CHF after the currency pair had posed a ‘lower high’ inflection of resistance. And while that prior up-trend was attractive from both a fundamental and a technical view, the risk-reward of the setup was utterly unattractive for chasing long positions, and we drew attention to deeper support levels in the effort of planning-around longer-term bullish positions.

Over the past three weeks, the US Dollar has put in a considerable bout of weakness as markets have grown increasingly skeptical that the Fed may be nearing rate hikes anytime soon, and as this rather pervasive theme has continued to permeate through financial markets, US Dollar weakness has been visible against most currencies, including the Swiss Franc. This has driven price action in the pair down towards those longer-term levels of support, and thus far on the day, the pair is responding with strength.

Swissy is nearing a very attractive zone of support just below the 95-handle. From the level of .9398-.9450, there are numerous iterations of support that could provide motivation for longer-term bullish entries. On the chart below, we look at these various levels of support.

USD/CHF Technical Analysis: Bear Flag or Bullish Reversal?

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

But this may not be something that traders yet want to chase, as near-term support is still continuing to build, and if we investigate this morning’s strength on a shorter-term basis, it highlights a shorter-term bear-flag formation. Earlier in the week we had a similar such technical scenario, and as you can see on the below chart, that bear flag eventually broke around the release of FOMC minutes on Wednesday.

USD/CHF Technical Analysis: Bear Flag or Bullish Reversal?

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

Bear flag formations can often show up as retracements in a continued down-trend, so this can become usable to traders as they await those deeper support levels in the .9398-.9450 zone; and should this show up over the next week traders can investigate attractive top-side setups in the Swissy.

At this early stage, Swissy price action appears to be working on a retracement in the down-trend. But the potential up-side of bearish plays will likely be limited given the robust support structure sitting below price action, so rather than looking at continuation of the near-term bearishness, traders can keep a watchful eye on support in the effort of looking for the ‘bigger picture’ bullish scenario.

--- 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