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
Wall Street
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
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in AUD/JPY are at opposite extremes with 67.26%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rz01eDKbJ2
  • Hey traders check out @PeterHanksFX make a guest appearance with @GuyAdami and @RiskReversal for this week's @macrosetup https://t.co/5oZ4UT4xiq
  • RT @IG_US: @GuyAdami & @RiskReversal talk: - "Bidenomics" - U.S. Debt Binge... - What the promise of added stimulus, QE forever, low rates…
  • $AUDUSD has pared today's gains, falling back to trade around the 0.7690 level after a climb to 0.7715 this morning. $AUD $USD https://t.co/E40qsrPHBa
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: US 500: 0.61% Wall Street: 0.29% Germany 30: 0.22% FTSE 100: 0.21% France 40: 0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/uVK1SrNXgZ
  • $GBPUSD crossed back above 1.3600 as the pair recovers from weakness yesterday and last week. The 1.3600 area has repeatedly come into play on the pair since mid December. $GBP $USD https://t.co/7uKgTrerg6
  • BoE Chief Economist Haldane: - Bounceback from Covid may be sharper than after financial crisis - BoE is not engaging in monetary financing - QE is temporary action to keep borrowing costs low #BoE $GBP
  • US Indices have held onto their earlier gains as the trading day continues. DOW +0.51% NDX +1.35% SPX +0.82% RUT +1.15% $DOW $QQQ $SPY $IWM
  • The price of gold trades below the 50-Day SMA ($1859) once again as the V-shape recovery from the November low ($1765) unravels. Get your $XAUUSD market update from @DavidJSong here:https://t.co/UrQKgi3VJR https://t.co/g6SpuXwrv0
  • webinar starting right now - topics up for discussion today: 1. Did USD just top? 2. Resistance at prior support EUR/USD 3. How long might USD pullback run for? starting right now - https://www.dailyfx.com/webinars/455809179 https://t.co/didg11SWgq
USD/CHF Technical Analysis: Breaking the Range with Reckless Abandon

USD/CHF Technical Analysis: Breaking the Range with Reckless Abandon

James Stanley, Strategist

USD/CHF Technical Analysis: Breaking the Range with Reckless Abandon

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

Talking Points:

  • USD/CHF Technical Strategy: Rampant USD-strength continues, 8-month range broken.
  • Swissy is still below resistance values from earlier in the year, which could keep the door open for reversal strategies for traders looking to take on short-USD exposure.
  • If you’re looking for trading ideas, check out our Trading Guides.

In our last article, we asked if the range in USD/CHF was still alive. But the rampant run in the U.S. Dollar is continuing to smash through resistance levels as the ‘reflation’ trade gets further priced-in to markets; and this has led to major support or resistance breaks in key areas such as EUR/USD, USD/JPY and Gold. But, for much of this run one of the apparent laggards in showing that USD-strength has been USD/CHF, as the pair had previously remained below prior resistance levels, giving rise to the idea that this could be an attractive venue to voice short-USD exposure.

But as we had written last week, with fresh highs showing, traders would likely want to put the range-trade on the back-burner until more information unveiled itself. And it has, but in terms of the prospect of range continuation that additional information hasn’t been very positive, as USD/CHF has broken out to fresh nine-month highs, taking out the March swing high at 1.0092 along with it.

Moving forward, traders would likely want to look elsewhere to voice long-USD themes, as USD/CHF has continued to lag behind markets such as EUR/USD, USD/JPY or Gold in pricing-in this newfound bout of USD-strength. This could also keep the pair as potentially attractive for traders looking to manage off long-USD exposure, or for those looking at reversal plays in the Greenback. There are three potential resistance levels that can be utilized for such an approach, as we look at below. Of particular note, the zone around 1.0300 is interesting as this is the 61.8% retracement of the 8-year move in the pair (taking the 2008 high to the 2011 low), as well as being the six-year high in USD/CHF.

USD/CHF Technical Analysis: Breaking the Range with Reckless Abandon

Chart 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