Two possible buy zones visible on the USD/CHF this morning...
With the EUR/USD recording its second consecutive daily gain, it should not come as a surprise to see the USD/CHF register similar, only inverse. As can be seen from the H4 chart this morning, the unit retested the underside of its 1.01 handle and pressed for lower ground, consequently forming a nice-looking AB=CD correction pattern around the 1.0038 region (127.2% Fib ext. point). By and of itself, this will likely attract buyers into the market, given it is located nearby the 2016 yearly opening level at 1.0029 on the weekly timeframe.
Still, despite this, parity (1.0000) also remains an appealing level, fusing with a H4 trend line support (etched from the low 0.9847) and a 78.6% H4 Fib support at 0.9992. In addition to this, parity is seen positioned just north of daily support coming in at 0.9986.
Areas of consideration:
Based on our technical studies, two areas of support are in the offing today:
1. The AB=CD completion point at 1.0038 (note a fakeout beneath this level to the 2016 yearly opening level at 1.0029 on the weekly timeframe is expected) could potentially hold price higher, with an initial target residing around November’s opening level at 1.0081.
2. 1.0000, thanks to its converging support on the H4 and daily timeframe, is an area buyers also likely have their crosshairs fixed on. As price has yet to complete its approach, it is difficult to accurately decide on a first take-profit target, though as it stands 1.0050ish appears logical.
Conservative traders may opt to wait and see how H4 price action behaves before pulling the trigger at each of the above said levels. A bullish candlestick formation would help confirm seller interest, and also provide entry/stop parameters.
Today’s data points: US Retail sales m/m; Philly Fed manufacturing index; FOMC member Quarles speaks; Fed Chair Powell speaks; FOMC member Bostic speaks.
Still, despite this, parity (1.0000) also remains an appealing level, fusing with a H4 trend line support (etched from the low 0.9847) and a 78.6% H4 Fib support at 0.9992. In addition to this, parity is seen positioned just north of daily support coming in at 0.9986.
Areas of consideration:
Based on our technical studies, two areas of support are in the offing today:
1. The AB=CD completion point at 1.0038 (note a fakeout beneath this level to the 2016 yearly opening level at 1.0029 on the weekly timeframe is expected) could potentially hold price higher, with an initial target residing around November’s opening level at 1.0081.
2. 1.0000, thanks to its converging support on the H4 and daily timeframe, is an area buyers also likely have their crosshairs fixed on. As price has yet to complete its approach, it is difficult to accurately decide on a first take-profit target, though as it stands 1.0050ish appears logical.
Conservative traders may opt to wait and see how H4 price action behaves before pulling the trigger at each of the above said levels. A bullish candlestick formation would help confirm seller interest, and also provide entry/stop parameters.
Today’s data points: US Retail sales m/m; Philly Fed manufacturing index; FOMC member Quarles speaks; Fed Chair Powell speaks; FOMC member Bostic speaks.
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