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
EUR/USD
Mixed
Oil - US Crude
Bullish
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
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.22% Oil - US Crude: -0.12% Gold: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/7UGWflcF7Y
  • - #NZDCHF outlook bearish as the pair struggles to surmount key resistance range - #NZDCAD trading at 13-month highs, but are technical cues hinting at a pullback? - #AUDNZD is again retreating from five-year resistance – how much will it decline? https://www.dailyfx.com/forex/market_alert/2020/07/08/New-Zealand-Dollar-Analysis-NZDCHF-NZDCAD-AUDNZD.html
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.08% 🇪🇺EUR: 0.00% 🇨🇦CAD: 0.00% 🇨🇭CHF: -0.04% 🇦🇺AUD: -0.10% 🇯🇵JPY: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/lTYr3UzRhP
  • RT @DanielGMoss: A ‘second wave’ of #COVID19 cases threatens to hamper #Australia's tentative recovery Uncertainty around the future of fi…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.26%, while traders in NZD/USD are at opposite extremes with 72.66%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ksJ0N2pq6W
  • A macro forex trading guide exploring how to trade the Euro vs the Swedish Krona and Norwegian Krone through the prism of the Core-Perimeter model. Get your market update from @ZabelinDimitri here:https://t.co/n6zwlZJmGO https://t.co/F8sLZvRG1q
  • If you missed today's session on IG Client Sentiment where I discussed the outlook for the #DowJones, $AUDUSD and $USDCAD while discussing fundamentals and technicals, check out the recording below and stay tuned for a full report! - https://t.co/2wVxhtItzX
  • Wall Street Futures Update: Dow Jones (+0.213%) S&P 500 (+0.175%) Nasdaq Composite (+0.242%) [delayed] -BBG
  • RT @margaretyjy: Watch my Bloomberg TV interview at 9:00AM Singapore time. Coming in soon! https://t.co/Z6u6offept
  • The Core-Perimeter trading model helps traders understand interactions between global economies, helping to trade the assets embedded in these relationships. Get your market update from @ZabelinDimitri here:https://t.co/dKRAo00lfA https://t.co/jw5uvZBvRx
USD/CHF Technical Analysis: Breaking the Range with Reckless Abandon

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

2016-11-23 15:26:00
James Stanley, Strategist
Share:

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

News & Analysis at your fingertips.