USD/CHF Key Levels For End-Of-Week
Shain Vernier • 2 min read
It has been a relatively strong week for the USD across the majors. The movement in pricing has produced many opportunities to profit over the first four trading sessions. Is this the beginning of an intermediate-term USD bull run moving into the close of 2017?
Talks of a prolonged recovery may be a bit premature. However, the recent strength against the EUR, CAD and CHF gives one reason to ponder the long-term prospects of the greenback.
The Swiss franc is a traditional safe-haven among currency investors. It has been surprising to see the USD rally against it in the aftermath of the Las Vegas mass shooting.
Earlier this week I outlined the roadmap for the USD/CHF. As of now, we are coming into an interesting technical area. Here are the high points:
The key psyche level of .9800 is currently acting as topside resistance.
The 50% retracement of 2017’s range is .9878.
The 38% level of 2017’s range is .9770.
September’s high of .9769 has brought mixed participation.
The last month has seen the USD/CHF grind higher from a low around .9450 to a high near .9800. From here, we are likely to see sideways trading between the .9800 level and .9770. This is a tight 30 pip range and one that is primed for rotation.
Bottom Line: There are many ways to trade this market. As of yet, we are not in full-blown rotation. A breakout above .9800 is very possible. Here are the entries I will be looking at:
Short from .9878
Short from .9800 on intraday compression
Long from .9770
Until a hard range for today is established at close, trade management is mostly guesswork. Short-term scalps may be the play, or affordable positions may be taken. A position long from .9770 with a stop beneath today’s intraday low is a good way to play a 1:1 R/R run back to .9800.
The best course of action is to re-evaluate before tomorrow’s U.S. unemployment number is released. We may have a chance to buy a breakout above .9800 or sell the yearly 50% retracement on heavy participation.
Until then, trade smart and watch the risk management!