23 - 11
USD/CHF Technical Analysis: Breaking a Range with Reckless Abandon
To accept James Stanley’s Analysis directly around email, greatfully sign adult here.
- USD/CHF Technical Strategy: Rampant USD-strength continues, 8-month operation broken.
- Swissy is still next insurgency values from progressing in a year, that could keep a doorway open for annulment strategies for traders looking to take on short-USD exposure.
- If you’re looking for trade ideas, check out a Trading Guides.
In a final article, we asked if a operation in USD/CHF was still alive. But a prevalent run in a U.S. Dollar is stability to pound by insurgency levels as a ‘reflation’ trade gets serve priced-in to markets; and this has led to vital support or insurgency breaks in pivotal areas such as EUR/USD, USD/JPY and Gold. But, for most of this run one of a apparent laggards in display that USD-strength has been USD/CHF, as a span had formerly remained next before insurgency levels, giving arise to a thought that this could be an appealing venue to voice short-USD exposure.
But as we had created final week, with uninformed highs showing, traders would expected wish to put a range-trade on a back-burner until some-more information denounced itself. And it has, though in terms of a awaiting of operation delay that additional information hasn’t been really positive, as USD/CHF has damaged out to uninformed nine-month highs, holding out a Mar pitch high during 1.0092 along with it.
Moving forward, traders would expected wish to demeanour elsewhere to voice long-USD themes, as USD/CHF has continued to loiter behind markets such as EUR/USD, USD/JPY or Gold in pricing-in this newfound hitch of USD-strength. This could also keep a span as potentially appealing for traders looking to conduct off long-USD exposure, or for those looking during annulment plays in a Greenback. There are 3 intensity insurgency levels that can be employed for such an approach, as we demeanour during below. Of sold note, a section around 1.0300 is engaging as this is a 61.8% retracement of a 8-year pierce in a span (taking a 2008 high to a 2011 low), as good as being a six-year high in USD/CHF.
Chart prepared by James Stanley
— Written by James Stanley, Analyst for DailyFX.com
To accept James Stanley’s research directly around email, greatfully SIGN UP HERE
Contact and follow James on Twitter: @JStanleyFX