Short from 0.9896, with a stop placed at 0.9915...
After retesting the underside of 0.99 during the early hours of yesterday’s session, the USD/CHF fell to a low of 0.9846. Leaving the H4 support at 0.9837 unchallenged, the pair reclaimed earlier losses and revisited 0.99.
Right now, we believe this is a sellers’ market. Here’s why:
• Weekly price shows room to drive as far south as weekly support coming in at 0.9770.
• Daily price recently crossed below support at 0.9896 (now acting resistance).
• H4 price is, as mentioned above, retesting 0.99. Alongside this, however, we can also see that 0.99 fuses with a H4 channel support-turned resistance taken from the low 0.9939 and a H4 38.2% Fib resistance.
Suggestions: We have entered at 0.9896, with our stop-loss order located at 0.9915, a few pips above yesterday’s high. The first take-profit target, should the trade play out, is the aforementioned H4 support level.
Data points to consider: US unemployment claims, Import prices m/m and Philly Fed manufacturing index at 1.30pm; Industrial production m/m and capacity utilization rate at 2.15pm; FOMC member Kaplan speaks (timing tentative); FOMC member Brainard speaks at 8.45pm; Gov. Board member Maechler speaks at 5pm GMT.
Right now, we believe this is a sellers’ market. Here’s why:
• Weekly price shows room to drive as far south as weekly support coming in at 0.9770.
• Daily price recently crossed below support at 0.9896 (now acting resistance).
• H4 price is, as mentioned above, retesting 0.99. Alongside this, however, we can also see that 0.99 fuses with a H4 channel support-turned resistance taken from the low 0.9939 and a H4 38.2% Fib resistance.
Suggestions: We have entered at 0.9896, with our stop-loss order located at 0.9915, a few pips above yesterday’s high. The first take-profit target, should the trade play out, is the aforementioned H4 support level.
Data points to consider: US unemployment claims, Import prices m/m and Philly Fed manufacturing index at 1.30pm; Industrial production m/m and capacity utilization rate at 2.15pm; FOMC member Kaplan speaks (timing tentative); FOMC member Brainard speaks at 8.45pm; Gov. Board member Maechler speaks at 5pm GMT.
Comment:
Not where we wanted price to trade. Looks like we may get tapped here.
Comment:
Stopped out.
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.