Interesting technical picture on the USD/CHF, traders...
USD/CHF:
Broad-based USD buying (US dollar index overthrew its 96.50 mark to the upside) bolstered the USD/CHF into US trade Thursday. This, as you can see from the H4 timeframe, hauled the candles back to the lower boundary of 1.0000/0.9977 (comprised of the 1.0000 (parity) level and December’s opening level at 0.9977), which is, once again, holding ground. It is also important to note this area houses daily resistance at 0.9986 within, which by and of itself holds significant history.
Should further selling take shape on the H4 scale, the unit may complete an ABCD 127.2% correction (black arrows) around 0.9919, sited just north of a H4 trend line resistance-turned support. Note this pattern is also strengthened by a nearby round number at 0.99.
With respect to the weekly timeframe, however, the current candle is trading in the shape of a bearish pin-bar formation, though still displays range to extend gains towards the 2016 yearly opening level at 1.0029.
Areas of consideration:
While the research team expects further downside to be seen today, according to our technical observations on the daily timeframe, a bounce from the aforementioned H4 trend line resistance-turned support/nearby 0.99 handle (especially if the H4 candles retreat in the form of an ABCD pattern as highlighted above) is a possibility. To trade long from these levels, though, knowing daily sellers are forcing the unit lower from resistance at 0.9986 is, as you can imagine, a touch precarious. Waiting for additional confirmation, therefore, is recommended before searching for that buy button.
For folks searching for lower levels, a close below 0.99 that’s followed up with a retest as resistance is certainly something to keep a watchful eye out for, targeting January’s opening level at 0.9838. There is a minor H4 demand present around 0.9883ish (red arrow), though given the daily picture we feel this will likely be consumed. For conservative traders wishing to add a little more confirmation to the mix, consider waiting for a bearish candlestick signal to form (preferably off the underside of 0.99 on the retest – entry/stop parameters can be defined according to this pattern) before pulling the trigger.
Today’s data points: Limited.
Broad-based USD buying (US dollar index overthrew its 96.50 mark to the upside) bolstered the USD/CHF into US trade Thursday. This, as you can see from the H4 timeframe, hauled the candles back to the lower boundary of 1.0000/0.9977 (comprised of the 1.0000 (parity) level and December’s opening level at 0.9977), which is, once again, holding ground. It is also important to note this area houses daily resistance at 0.9986 within, which by and of itself holds significant history.
Should further selling take shape on the H4 scale, the unit may complete an ABCD 127.2% correction (black arrows) around 0.9919, sited just north of a H4 trend line resistance-turned support. Note this pattern is also strengthened by a nearby round number at 0.99.
With respect to the weekly timeframe, however, the current candle is trading in the shape of a bearish pin-bar formation, though still displays range to extend gains towards the 2016 yearly opening level at 1.0029.
Areas of consideration:
While the research team expects further downside to be seen today, according to our technical observations on the daily timeframe, a bounce from the aforementioned H4 trend line resistance-turned support/nearby 0.99 handle (especially if the H4 candles retreat in the form of an ABCD pattern as highlighted above) is a possibility. To trade long from these levels, though, knowing daily sellers are forcing the unit lower from resistance at 0.9986 is, as you can imagine, a touch precarious. Waiting for additional confirmation, therefore, is recommended before searching for that buy button.
For folks searching for lower levels, a close below 0.99 that’s followed up with a retest as resistance is certainly something to keep a watchful eye out for, targeting January’s opening level at 0.9838. There is a minor H4 demand present around 0.9883ish (red arrow), though given the daily picture we feel this will likely be consumed. For conservative traders wishing to add a little more confirmation to the mix, consider waiting for a bearish candlestick signal to form (preferably off the underside of 0.99 on the retest – entry/stop parameters can be defined according to this pattern) before pulling the trigger.
Today’s data points: Limited.
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