Double Bottom Holds For The USD/CHF
Shain Vernier • 1 min read
It has been a quiet open to the U.S. trading week. The U.S. indices are posting a moderate rally, led by the DJIA DOW (+98), S&P 500 SPX (+13), and NASDAQ (+45). At this point, it appears that risk continues to be in vogue. Safe-havens aren’t grabbing their usual market share, as shown by tight daily ranges in gold, the USD/JPY, and USD/CHF.
However, U.S. Treasuries continue to be a hot item. Yields on short-term debt have fallen yet again, with the 3 and 6-Month T-Bills sliding towards historical lows:
Event Actual Previous
3-Month T-bill 1.52% 1.62%
6-Month T-bill 1.535% 1.610%
In addition to the weekly debt auctions, the ISM-NY Business Conditions Index (Oct.) was released to the public. The number came in at 47.7, up from the previous release of 42.8. While this is a secondary metric at best, the improvement has brought a bit of optimism to the market, not to mention a few bids.
USD/CHF Bounces From Double Bottom
In a Live Market Update from last week, I outlined a buying opportunity for the USD/CHF. The trade set up beautifully, bouncing hard from the 0.9850 area.
Here are two levels to keep an eye on as the day unfolds:
- Support(1): Double Bottom, 0.9843-38
- Resistance(1): Daily SMA, 0.9899
Overview: Compared to last week, the coming 5 days feature a limited economic calendar. No FED engagements are scheduled, nor are there any GDP figures. At least for the immediate future, the forex action is very likely to be muted.