There really is only one word we have for the USD/CHF pair this morning, and that is, ‘overbought’. Check out how price is nibbling at the underside of both a weekly swap (resistance) level at 0.9796, and also a daily supply area at 0.9861-0.9775, which, as you can see, also boasts trendline confluence extended from the high 1.0239. It does not end there! 4hr timeframe action also shows price clinging to the upper limits of a 4hr ascending channel taken from the low 0.9155 and high 0.9414. All of this coupled with round-number resistance from 0.9800 may send this market lower today.
In spite of the above, however, we are not going to be looking to short just now as we have our beady little eye on the 4hr Quasimodo resistance level sitting just above current price at 0.9835. The reason for why we’re not looking to short at this time simply comes from there still being room for this market to appreciate further within the aforementioned daily supply zone. Therefore, if price does manage to touch gloves with 0.9835 today, we’d confidently enter short at market with our stop above the daily supply area at 0.9865 – a small stop loss really, when you consider the location of price on the higher timeframe picture.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 0.9835 (Stop loss: 0.9865).
In spite of the above, however, we are not going to be looking to short just now as we have our beady little eye on the 4hr Quasimodo resistance level sitting just above current price at 0.9835. The reason for why we’re not looking to short at this time simply comes from there still being room for this market to appreciate further within the aforementioned daily supply zone. Therefore, if price does manage to touch gloves with 0.9835 today, we’d confidently enter short at market with our stop above the daily supply area at 0.9865 – a small stop loss really, when you consider the location of price on the higher timeframe picture.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 0.9835 (Stop loss: 0.9865).
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