USD/CHF Stalls Out At Daily Support
Shain Vernier • 1 min read
It has been a big week for the USD/CHF, featuring high levels of participation and wide daily ranges. By comparison, today has been dull. The session range is an ultra-tight 22 pips and price is consolidating in the vicinity of downside support.
With no primary economic events scheduled in the U.S. or Switzerland until the weekly closing bell, Brexit news is going to dominate the action. Coming up at 1:00 PM EST, British Parliament is due to vote on Article 50 and the possibility of holding a second referendum. A surprise outcome will be sure to drive action to the Swissie.
The past two sessions have featured considerable drops in the USD/CHF and test of daily downside support.
Here are the levels to watch for the remainder of the session:
- Support(1): Daily SMA, 1.0035
- Support(2): 62% Retracement 1.0002
Bottom Line: Brexit is going to once again rule the forex, with the coming Parliamentary votes to drive participation to the market. In the event we see a continuation of the recent bearish price action, I will be looking to buy in from just the 62% retracement at 1.0006. With an initial stop at 0.9974, this trade produces 25 pips on a sub-1:1 risk vs reward management plan.