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
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
Oil - US Crude
Bullish
Wall Street
Bullish
Gold
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/MIgA7RlblS
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/OSOYhffKNr
  • Japan FinMin Aso: Extra budget must also help change post-virus economy No decision on giving cash handouts to single parents Local banks must be strong enough to serve communities and must make own decisions on issues like mergers - BBG $JPY
  • China to impose anti-dumping deposits over Australian wine from Nov 28th - Reminder: Alcoholic beverage exports have over a 30% exposure to China $AUD https://t.co/jLTjF9AV68
  • Heads Up:🇨🇳 Industrial Profits (YTD) YoY (OCT) due at 01:30 GMT (15min) Previous: -2.4% https://www.dailyfx.com/economic-calendar#2020-11-27
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/AU5jpWFHZB
  • UK cites new rule allowing MHRA to approve vaccine before EU - BBG
  • UK Government asks drug regulator to evaluate Oxford-AstraZeneca Vaccine - BBG
  • 🇯🇵 Foreign Bond Investment (21/NOV) Actual: ¥1,964.0B Previous: ¥1009.1B https://www.dailyfx.com/economic-calendar#2020-11-26
  • Heads Up:🇯🇵 Foreign Bond Investment (21/NOV) due at 23:50 GMT (15min) Previous: ¥1009.1B https://www.dailyfx.com/economic-calendar#2020-11-26
USD/CHF Technical Analysis: Hanging On to the Prior Trend

USD/CHF Technical Analysis: Hanging On to the Prior Trend

2017-01-25 17:44:00
James Stanley, Strategist
Share:

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

Talking Points:

In our last article, we looked at the congested move-lower in USD/CHF as the prior up-trend continued to retrace. And while the move-lower has persisted now for over six weeks after resistance came-in after new six-year highs, the bulk of the trend remains in-tact and this can keep the door open for top-side strategies.

Of particular interest to bulls is the zone of potential support running from .9947 up to the vaulted ‘parity’ figure at 1.0000. This 53-pip zone of support has numerous reasons to elicit interest: This had helped to form the resistance of the prior range that lasted for much of 2016. At .9951 we have the 61.8% Fibonacci retracement from the major move in the pair spanning the 2010 high down to the 2011 low. And at .9947 we have the 50% retracement of the ‘post-Election’ move in USD/CHF, which can help to demarcate bullish continuation prospects. Should price action fall below this zone, bullish continuation can be thought of as less-likely, so this can become an opportune zone to place stops or manage risk on bullish positions. On the Daily chart below, we’re looking at the current setup in Swissy with emphasis on this potential zone of support.

USD/CHF Technical Analysis: Hanging On to the Prior Trend

Chart prepared by James Stanley

On the shorter-term chart below, we can see buyers attempting to defend this confluent level above .9950, and the multiple wicks showing very near this level of support highlights multiple attempts from bears to drive below; each which was rebuked by buyers. Just a day later bears attempted to re-drive below support, but this time bulls showed up even-quicker, leading to the short-term higher-low shown on the chart below:

USD/CHF Technical Analysis: Hanging On to the Prior Trend

Chart prepared by James Stanley

For those that want to wait for confirmation or move-forward with a more-conservative stance, awaiting another ‘higher-high’ can highlight a greater indication that bulls may be able to take control of near-term price action. The prior swing-high came in at 1.0025, and a break-above this level will give us a fresh higher-high on the hourly chart to go along with that recent higher-low, signaling bullish continuation prospects on the near-term setup.

--- 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