USD/CHF Challenges Key Fibonacci Level
Shain Vernier • 1 min read
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.
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.