The USD is struggling to hold on against the majors for this early Friday U.S. session. Losses against the Euro, British pound, and Swiss franc have highlighted the action. Gains against the Australian dollar have been the lone bright spot for the Greenback.

With a quiet economic calendar scheduled for the rest of the trading day, action in the USD will be indicative of trader sentiment. Will market participants begin to favor the USD as the weekend close draws near? We are certainly going to find out.

Let’s take a look at the USD/CHF daily chart and see if the Greenback is set up for an intraday rally.

USD/CHF Technical Outlook

At press time, the USD/CHF is trading at the .9900 handle. This area coincides with a key area of support on the daily chart.

Here are the levels to watch for the remainder of the day:

• Resistance(1): 38% of Thursday’s Range, .9931 (Not Pictured)
• Support(1): Bollinger MP, .9901
• Support(2): Daily SMA, .9874

Bottom Line: The area between support levels (.9900-.9875) has already withstood one test from sellers. In the event we see an extension of intrasession lows, then a long from just above the Daily SMA is the play.

For the rest of the session, buys at .9877 with an initial stop at .9849 lend positive trade location to the bull. Using a sub- 1:1 risk vs reward management plan, this trade yields 22 pips on a return to .9899.

If elected, the long trade may take some time to be decided. Be sure to check out the Comments section below for updates and tips on how to successfully manage the open position.