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USD/CHF Challenges Key Fibonacci Level

With equities in bullish territory and the USD recovering from post-FED shock, the Swiss franc is losing some safe-haven appeal. For the third straight session, the USD/CHF is in positive territory and a return to par value appears imminent. However, several areas of daily topside resistance stand in the way, including a key Fibonacci retracement level.

38% Fibonacci Retracement Level Coming Into View

Even though the Swissie has been trading in a tight range over the past week, there have been some good opportunities. Depending on your broker and entry price fill, this trade recommendation may have brought you some quick profits. If not, check out this short trading plan issued during the Wednesday session.

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

Here are the key levels to watch in this market:

  • Resistance(1): 38% Retracement, .9982
  • Resistance(2): Daily SMA, .9984
  • Resistance(3): Bollinger MP, 1.0003

Bottom Line: Converging indicators are a good thing, and the Swissie has three resistance levels setting up between .9982 and 1.0003. In addition, all fall in the vicinity of par value (1.0000).

In the event that the USD/CHF continues to rally, the range between .9974 and 1.0006 is set up to be an area of robust resistance. This is a premier shorting location in concert with the daily bearish trend.

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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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