Thus far, today’s U.S. session has been a typical Monday. Calm markets are the story dominating the early action, with many of the majors exhibiting range bound structure. The USD/CHF is one pair that is particularly prone to rotational trading. While engaging quiet markets is a challenge, it can also be profitable given an appropriate strategy.

Let’s dig into the technicals for the Swissie and see if there are any opportunities to be had.

USD/CHF Technical Outlook

As my colleagues Rowan and Skerdian referred to earlier, today’s economic calendar is wide open. With no fundamental drivers of price coming into play until tomorrow, the chances of a surprise breakout in the USD/CHF are slim.

USD/CHF, Daily Chart

Currently, price is near .9950-55 firmly in between macro support and resistance levels. An earlier test of the 62% yearly retracement is serving as the intraday high at .9986. In addition, we have the Bollinger MP and Daily SMA converging, in a similar fashion to the USD/CAD analysis included in my last update.

Here are the key levels to be aware of for the remainder of the U.S. session:

• Resistance(1): 62% yearly retracement, .9986

• Resistance(2): Last week’s high, 1.0028

• Support(1): 20 Day EMA, .9920

• Support(2): Bollinger MP, .9906

• Support(3): 13 Day SMA .9877

Trading Plan: The rejection of topside resistance at .9986 is a strong signal that we are likely range-bound for the remainder of the forex session. A long from the 20 Day EMA is a good way to capitalize on rotation back towards the .9950 area.

A 1:1 R/R long from .9920 with an initial stop loss at .9899 is an affordable way to trade the quiet price action. If successful, a 20 pip profit is a nice way to start the trading week while assuming limited risk.