Double Bottom Holds For The USD/CHF - Forex News by FX Leaders
USD/CHF

Double Bottom Holds For The USD/CHF

Posted Monday, November 4, 2019 by
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.

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

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.

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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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