Test Of Key Support Levels-Outlook For The USD/CHF
Shain Vernier • 1 min read
The Swiss franc has put on a show against the greenback for the past two sessions. In the face of struggling dollar, the franc has posted a sustained rally producing a test of downside support. Since the initial test, the USD/CHF has entered rotation.
A key macro support level serves as the bottom extreme of today’s trade. In the event that it does not hold, a considerable shift in market sentiment will have taken place.
USD/CHF Technical Outlook
It is good to see the forex spring to life, as we have had dull market conditions to contend with for an extended period. Today’s action in the Swissie will set us up for a late week trade or two.
USD/CHF, Daily Chart
Here are the key levels for the remainder of the U.S. session:
Resistance(1): Bollinger MP, .9905
Resistance(2): 13 Day SMA, .9912
Resistance(3): 20 Day EMA, .9914
Support(1): 50% yearly retracement, .9878
Support(2): Intraday low, .9846
Support(2): Psyche level, .9800
Overview: After an early bear run, action has settled down dramatically. Today’s close may produce a Doji on the daily timeframe, an indication of a consolidating market. We are likely to have a Bollinger MP/Daily SMA crossover for tomorrow’s session, so shorts from topside resistance will be probable entries.
For now, I am in wait and see mode until the forex close for the USD/CHF. In the meantime, if you are interested in trading plans facing a broad spectrum of asset classes, check out the FX Leaders live trading signals page.