USD/CHF Fails At 38% Fibonacci Level - Forex News by FX Leaders
Fibonacci

USD/CHF Fails At 38% Fibonacci Level

Posted Thursday, June 27, 2019 by
Shain Vernier • 1 min read

It has been a whipsaw session for the Greenback, with early strength giving way to late weakness. Modest rallies against the Swiss franc, Euro, and Canadian dollar have been snuffed out, with the USD/CHF failing to eclipse Fibonacci resistance. Midway through the U.S. session, it appears that June’s downtrend in the USD is ready to continue. 

Aside from GDP, the U.S. pre-market hours brought a collection of sub-par jobs reports. The American labor market has been strong over the past 2.5 years, a highlight of economic performance. However, Continuing Jobless Claims (June 14) and Initial Jobless Claims (June 21) both came in worse than expected. While these are peripheral employment metrics, the summertime lag certainly has the attention of many analysts.

USD/CHF Rejects 38% Fibonacci Resistance

The bear run in the USD/CHF is intact following an early session rejection of the daily 38% Current Wave Fibonacci Retracement (.9815). Since then, sellers have stepped in and flipped a once-promising rally on its head.

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

Overview: In a Live Market Update from yesterday, I issued a short trade recommendation for the Swissie. The play turned out to be a success, as rates rejected Fibonacci resistance before falling more than 40 pips. If you missed the update, check it out here

As Friday’s closing bell approaches, everyone is wondering what the weekend G20 Summit will bring. While some traders may choose to go home long the Greenback in hopes of a U.S./China trade breakthrough, sustaining any sort of rally will be tough. For the moment, monitoring the G20 from the sidelines may be the best idea.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

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.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments