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USD/CHF Rallies North Of .9970

Shain Vernier•Friday, November 22, 2019•2 min read

The Greenback is putting together a rock-solid forex session. Large moves against the euro, British pound, and Swiss franc have highlighted the late-week action. Safe-haven currencies are also floundering vs the dollar, with the USD/CHF trending north and the USD/JPY posting modest gains. At this point, it appears currency traders are excited over today’s University of Michigan Consumer Sentiment Index (November).

Academic Metrics Come In Mixed

The Friday session has brought the release of two academic metrics, each painting a very different economic picture. Here is a quick look at the data:

Event                                                                                     Actual          Projected        Previous

UM Consumer Sentiment Index (Nov.)                                96.8                95.7                 95.7

Kansas City FED Composite Index (Nov.)                             -3                     NA                   -3

The headliner of this group is the UM Consumer Sentiment Index (Nov.) The figure came in at 96.8, outperforming expectations by more than a point. Such a jump has been welcomed news for equities bulls. At press time (1:15 PM EST), the DJIA DOW (-93), S&P 500 SPX (-5), and NASDAQ (-10) are all in positive territory.

One of today’s brightest forex pairs has been the USD/CHF. Let’s dig into the technicals and see if we can spot a trading opportunity.

USD/CHF: Technical Outlook

It has been a breakout trend day up for the USD/CHF. Rates are on bull north of .9975 and appear to be headed for par.

For the remainder of the session, there is one level on my radar:

• Resistance(1): Par Value, 1.0000

Bottom Line: When it comes to big-round-numbers, they don’t get much bigger or rounder than 1.0000 in the Swissy. Par value is always a hotly contested area and regularly acts as a key support or resistance level.

Until elected, I will have sell orders queued up from 0.9994. With an initial stop loss at 1.0026, this trade produces 32 pips on a standard 1:1 risk vs reward ratio.

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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