U.S. Cash Open Brief: Upcoming Resistance For The Swissie!
Shain Vernier • 1 min read
Today’s U.S. cash open has been an active one, specifically towards the USD and U.S. equities. The DJIA is rocking, up 110 points in early trading and the USD continues its rally across the majors. If you caught yesterday’s end of session brief, I outlined two trade opportunities for the USD/CHF and USD/CAD. The play in the Swissie proved effective, but more on that later.
An opportunity to short from a macro resistance level is poised to come into play in the near future.
USD/CHF Technical Outlook
Currently, the USD/CHF has posted a breakout rally of over 40 pips. If the strength continues, we will get a shot to trade a yearly Fibonacci retracement level.
USD/CHF, Daily Chart
Let’s keep it brief, here are the levels and outlook for this pair:
The key support level of .9770 held during yesterday’s trade, launching us into a bullish trend day up so far this session.
The psychological level at .9800 has been eclipsed with considerable vigor.
Price is currently trading at the upper Bollinger Band of .9829.
Topside resistance is evident at .9878, the 50% retracement of the yearly range.
Trade Idea: A short from .9870-.9878 is a solid location to the bear. An initial stop above .9905 sets up a solid 1:1 or 1:2 risk vs reward scenario on a return to .9800. Depending upon your trading goals, a scalp or tighter position trade is perfectly acceptable from this level.
As always, trade smart and keep an eye on your leverage!