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.

Free Trading Guides
EUR/USD
Bearish
GBP/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
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • The US Dollar remains in consolidation mode against the Philippine Peso and Indian Rupee. Will the Singapore Dollar weaken as $USDSGD rising support holds ahead? Find out from @ddubrovskyFX here: https://t.co/HZ8Loqj3Ey https://t.co/6PCFkdj3ka
  • Follow @DailyFXedu for your regular #webinar updates with @DailyFX analysts and catch up on the webinars you missed. https://t.co/Da10QUg9r1
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/Le8Qx6OOwV
  • $GBPUSD at the moment break-even straddles = 152pips meaning that for option traders to realize gains, the spot price must see a move greater than 152pips. Get your market update from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/RXCBwHGluG
  • $EURGBP has fallen over 6% since August and is now rapidly approaching a critical support level not reached since May. Will a break below accelerate the aggressive selloff? Find out from @ZabelinDimitri here: https://t.co/CBM8Fg7vM0 https://t.co/0yDnEpzQqR
  • The #Euro is struggling for direction against the US Dollar but the near-term downtrend guiding it lower since late June remains firmly intact. Where is $EURUSD heading? Get your technical analysis from @IlyaSpivak here: https://t.co/us6AINmuoe https://t.co/J4hQtyprYf
  • $DXY & $SPX500 hold steady after #FED rate cut. Get your update from @JohnKicklighter here: https://t.co/vqXlKCMDYA
  • Dow Jones & Dax 30 levels to watch ahead of the fed from @PeterHanksFX here: https://t.co/iUIrsygKz2
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/vtHhdnF82Q
  • How can confidence in trading help with avoiding #FOMOintrading? Find out from @WVenketas here: https://t.co/MY7j9ISn4S https://t.co/n7XwfiDZz2
USD/CHF Technical Analysis: Trend-Line Support as New Resistance

USD/CHF Technical Analysis: Trend-Line Support as New Resistance

2017-06-21 18:31:00
James Stanley, Currency Strategist
Share:

Talking Points:

- USD/CHF Technical Strategy: Longer-term range-bound, intermediate-term bearish & shorter-term mixed.

- USD/CHF price action remains rather messy after breeching-below a key support zone earlier in the month.

- If you’re looking for trading ideas, check out our Trading Guides. They’re free and updated for Q1, 2017. If you’re looking for ideas more short-term in nature, please check out our IG Client Sentiment.

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

In our last article, we looked at a confluent zone of support in USD/CHF in the effort of catching a topside move in the pair. And while that support held for a few days, it was unable to offset the continued drive of sellers until, eventually, support gave way as price action set a fresh seven-month low at .9614. Making up that support zone were two longer-term Fibonacci levels combined with a bullish trend-line projection that can be found by connecting the May, 2015 low to the low from last November’s elections.

USD/CHF Technical Analysis: Trend-Line Support as New Resistance

Chart prepared by James Stanley

You might notice that near-term price action in USD/CHF looks a bit messy at the moment; and since we’ve run into this confluent zone of support, shorter-term price action in Swissy has been very much like barbed wire. So, for clarity’s sake, we’re dialing out to the weekly chart below, and isolating this trend-line in the effort of getting a better perspective of current dynamics in USD/CHF price action.

USD/CHF Technical Analysis: Trend-Line Support as New Resistance

Chart prepared by James Stanley

The above chart helps to highlight how we may be looking at what could be bearish continuation prospects in USD/CHF. There are, however, some challenges to such an approach given our current context, chief of which is the fact that the U.S. Dollar appears to be gaining ground, and this, of course, could be a headwind for short USD/CHF scenarios.

However, for those that are looking for or are comfortable with taking on short-USD exposure, attractive risk-reward could be available by trading on recent price action dynamics. On the chart below, we’re looking at three support and resistance levels applied to USD/CHF based on recent price action. Traders that are entertaining a short stance can look to wedge stops above either level of resistance based on how aggressively they want to treat the move, while the three support levels can be used as profit target(s) for a down-side approach.

USD/CHF Technical Analysis: Trend-Line Support as New Resistance

Chart prepared by James Stanley

--- Written by James Stanley, Strategist for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.