Key Levels For The USD/CHF

It is hard to argue that “risk-on” has recently become the preferred strategy of investors around the world. Equities indices are up, gold is down and the USD is posting a measured recovery against many of the majors. Unless we see a fundamental change in the market dynamic, it looks as though the fourth quarter of 2017 could be a great one for traders receptive to higher degrees of risk.

This sentiment is apparent in the current rally in the USD/CHF. Let’s take a look at the key levels moving forward.

USD/CHF Technicals

Last week’s recommendation of a short in the USD/CHF turned out to be ill-fated, but not by much. The stop was hit at 1.0026, closing out the position. Ultimately, a high point of 1.0037 served as a reversal point for the market.

USD/CHF, Daily Chart

Undoubtedly, one of the most frustrating aspects of trading is getting stopped out before price moves into the green. All we can really do is chalk it up as a learning experience and journal the result. If premature stops become the norm, then it is time to adjust the trading plan.

For today’s pre-FOMC USD/CHF market, there are a few key support and resistance levels:

• Resistance (1): Key Psyche Level, 1.0500

• Resistance (2): 78% Yearly Fibonacci Retracement, 1.0134

• Support (1): 62% Yearly Fibonacci Retracement, .9986

• Support(2): 38% Fibonacci Retracement of Current Bull Run, .9922

Overview: We have talked about the FOMC meeting at length and the impact it may have on currency valuations. For now, I am going to wait for the release and adjust my strategy for tomorrow’s trade according to this afternoon’s price action.

Shorting the resistance levels will give us solid trade locations to profit from a pronounced northbound move. In the event that the USD/CHF rallies today, we will have several shorting scenarios for the Thursday and Friday sessions.

In the meantime, be sure to check out the trading signals page here at FX Leaders. Trade setups are available facing a wide variety of asset classes.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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