U.S. Treasuries Active: USD/CHF Approaches Support
It has been a mixed day for safe-haven currencies. The USD/CHF has sold off toward support, while the USD/JPY has shown some strength to the upside. Amid a rally in gold, the Japanese yen and Swiss franc have the attention of investors. Is popular sentiment shifting to a “risk-off” stance? Only time will tell, but the markets appear cautious.
For the second straight day, U.S. Treasury auctions have produced higher bond yields. The 4 Week Bill Auction featured a bolstered yield of 1.65%, up from 1.55%. With the action in the secured debt market, it looks as though institutional money is wary of coming policy toward the USD.
USD/CHF Technicals
It has been an active session for the Swissie. Traders have driven this market to the short, off more than 25 pips for the day.
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At press time, the USD/CHF has bounced off of the intraday low of .9429. With downside support present at .9420, a possible long trade is on the table for the second half of today’s session.
Here are the levels to watch going into the forex close:
- Support(1): Bollinger MP, .9420
- Support(2): Daily SMA, .9346
Bottom Line: A long from .9421 with an initial stop at .9394 is a positive way to play a rotational market for the remainder of the afternoon. This trade is good for 20 pips, not quite the conventional 1:1 R/R payoff.
As always, trade smart and for tomorrow!
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