Today’s session has been an active one across the majors. News driven volatility has been the order of the day, as monetary policy decisions have driven market participation. It seems as though price action is quieting down for the moment.

While we have a chance, let’s look at upcoming items that may shake up markets during the overnight and early tomorrow morning:

• New Zealand import/export data

• Japan foreign investment levels

• ECB deposit rate announcement

• U.S. jobs data

USD/CHF Technicals

Today’s session has been an interesting one for the USD/CHF, as initial bullish pressure has given way to concerted selling.

USD/CHF, Daily Chart

Here are some key levels for upcoming sessions:

• Resistance Level 1, round number of .9950

• Resistance Level 2, 62% yearly retracement of .9986

• Support Level 1, 50% yearly retracement of .9878

The overnight release of the ECB’s discount rate may have a measurable impact upon the USD/CHF. In the event that it does, we may get a shot at shorting the premium entry of .9986.

Trading Plan: Sell orders at .9974-.9986 are already in my queue and ready to go. This is a premium entry to the short, as the psyche level of 1.0000 will bolster participation and serve as a concrete stop out point.

1:1 R/R tight scalps are acceptable as is a larger position trade from this level. For scalps, the scenario is a sell entry from .9986 with a stop above 1.0005. The short position trade is more expensive, with entry shaded to .9974 and an initial stop above 1.0025.

No matter which trades are executed, watch the leverage and risk management!