Massive Intraday Range In The Swissie - Forex News by FX Leaders
Fibonacci

Massive Intraday Range In The Swissie

Posted Thursday, February 28, 2019 by
Shain Vernier • 1 min read

The appeal of the Swissie has spiked in what has been a chaotic trading session. The fallout from the U.S./North Korea nuclear talks stalling, as well as a surprise U.S. GDP release, have caused strange price action across many markets. Subsequently, safe-haven assets have experienced dramatic intraday swings in value.

Typically, when risk is off, safe-havens rally together. That has not been the case today ― gold is on the bear and the Swissie is posting nice gains vs the Greenback.

A Massive Daily Range In The Swissie

The USD/CHF currently has a mind of its own. An extraordinary 89 pip range has been the order of the day, with rates plunging to a session low of .9926. The price action from 10:00 to 11:00 AM EST is reminiscent of the “flash rally” back on February 11.

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

During the U.S. overnight, this market fell consistently as traders reacted to the negative news regarding the Trump/Un summit. However, a substantial reversal has followed the U.S. GDP release. At press time (1:00 PM EST), the Swissie is creeping back toward par value.

Bottom Line: Today’s crazy action in the USD/CHF is certain to have closed out a large number of long positions. In response, a short trade from just beneath par value isn’t a bad way to play this market until Friday’s closing bell. For the remainder of the week, I will have sell orders in the queue from .9994. With an initial stop loss at 1.0011, this trade produces a tidy 15 pips on a short-term rejection of par value.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments