CHF

A Fibonacci Sell For The USD/CHF

Posted Tuesday, November 20, 2018 by
Shain Vernier • 1 min read

The Greenback is putting together a decent forex session. Values have been on the rise for the USD across the majors, highlighted by gains vs the Euro, British pound sterling, and Australian dollar. As a result, the USD/CHF has stopped the bleeding for now, with rates bouncing from intraday lows near .9900.

To say the least, it has been an active trading day. U.S. stock indices have been on a rollercoaster, WTI crude oil has sold-off, and the USD is on the bull. It looks like traders are getting their licks in before the Thanksgiving break.

USD/CHF Technical Outlook

Following an early session plunge beneath Monday’s low, the Swissie has rebounded into positive territory. The USD/CHF is in position to close the session in the green, with a key level of topside resistance within range.

USD/CHF, Daily Chart
USD/CHF, Daily Chart

Here are two levels that will be on my radar until Wednesday’s close:

  • Resistance(1): 38% Current Wave Retracement, .9992
  • Support(1): Psyche Level, .9900

Bottom Line: The prevailing daily trend is down, with rates falling from 1.0128 to .9908 in little over five sessions. This is some heavy bearish action and must be respected until proven otherwise.

Until Wednesday’s forex close, I will be looking to join the downtrend from just under the current wave 38% Fibonacci retracement level (.9992). Sells from .9989 with an initial stop at 1.0031 produce 42 pips using a 1:1 risk vs reward ratio.

The area between .9990 and 1.0025 is setting up to be formidable resistance, featuring a convergence of technical levels. With a bit of luck, this trade will go live later today or during the coming U.S. overnight session.

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About the author

Shain Vernier is our 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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