USD/CHF Consolidates At Moving Average

For many currency traders, the USD/CHF is a go-to barometer of the Greenback’s health. Sustaining a value above par is widely viewed as being a signal of strength, due to the fact that the Swiss franc is a global symbol of financial stability. Since a steep late-March dip, the USD/CHF has been on the bull, establishing trade above 1.0000 for almost a full month.

The USD/CHF Consolidates Near A Key Daily Simple Moving Average (SMA)

Sometimes the technical outlook facing a currency pair is simple. Right now, the USD/CHF has entered heavy rotation and remains in bullish territory. It appears to be only a matter of time before the Double Top pattern (1.0230-36) is taken out.

Here are the key levels to watch in this market for the near future:

• 2-Way Catalyst: Daily SMA, 1.0186
• Resistance(1): Double Top, 1.0230-36
• Support(1): Bollinger MP, 1.0121
• Support(2): 38% April’s Range, 1.0119

Overview: In a Live Market Update from Monday, I outlined a long trading plan for the USD/CHF. If you missed it, feel free to check it out here.

Today has brought extreme consolidation in the Swissy near the daily Simple Moving Average (1.0186) and the 1.0200 handle. The 1.0200 area has turned out to be key, as it has been traded consistently since April 23. At this point, any breakout in the Swissy will have to originate from this area.

If you are trading the USD/CHF, be aware that China’s CPI (YoY, April) is due out during the coming U.S. overnight session. Given the current trade war tensions, all eyes will be on this number. In the event it disappoints, the Greenback will be in a position to post gains across the majors.

ABOUT THE AUTHOR See More

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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