U.S. Indices Rally, Key Support Level For The USD/CHF - Forex News by FX Leaders

U.S. Indices Rally, Key Support Level For The USD/CHF

Posted Monday, March 26, 2018 by
Shain Vernier • 1 min read

It has been a strong open to the trading week, with the U.S. indices making a substantial comeback. After the selloff of last Thursday and Friday, equities investors came into today’s session skeptical. The DJIA and S&P 500 have put many of those concerns to bed, each trending north over 1.5% in the first hour of trade.

The USD has not fared nearly as well. Losses against the Euro and Swiss franc have highlighted a bearish open to the forex week for the Greenback. In the next few hours, U.S. Treasury auctions are scheduled for the 3 and 6 month T-bills. Be on the lookout for action across the majors as investors engage the debt markets.

USD/CHF Technicals

The Swiss franc has been trending to the bear in recent days. As a result, the Swissie is nearing a key area of downside support.

USD/CHF
USD/CHF, Daily Chart

Here are the levels to watch for the remainder of the forex session:

  • Resistance(1): Bollinger MP, .9459
  • Support(1): Daily SMA, .9426

Bottom Line: At press time, the USD/CHF is trending to the bear, pushing intraday lows at .9437. Long entries from the Daily SMA at .9426 with an initial stop at .9399 is a positive way to play rotation back to the .9450 handle. A 1:1 R/R scenario produces 27 pips on a rejection of the Daily SMA.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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