USD/CHF Rebounds Above .9850 - Forex News by FX Leaders

USD/CHF Rebounds Above .9850

Posted Thursday, September 5, 2019 by
Shain Vernier • 1 min read

It has been a whipsaw day on the forex for the Greenback. Safe-havens have taken a big step back, with uptrends developing in the USD/CHF and USD/JPY. In addition, chaotic action in the EUR/USD and USD/CAD have grabbed the attention of traders. While the beginning of the session was ominous, things have turned around for the U.S. dollar.

One reason for the 180° shift in sentiment was last hour’s release of the ISM Non-Manufacturing PMI (August). The figure came in at 56.4, above expectations (54.0) and the previous release (53.7). The strong report has brought bullish action to the USD/CHF and furthered gains for the U.S. indices.

USD/CHF Pares Wednesday’s Losses

Following a 48-hour fire sale, the USD/CHF has bounced back today. Rates are up more than 50 pips at press time (11:15 AM EST) and back above the Daily SMA (.9831).

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

Bottom Line: In the event we see the positive optimism toward the USD/CHF fade, a long from the Daily SMA set up. For the remainder of the session, I will have buy orders in the queue from .9836. With an initial stop at .9809, this trade produces 25 pips on a slightly sub-1:1 risk vs reward ratio.

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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.
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