Interesting price action being seen on the USD/CHF pair
Weekly view: The USD/CHF rallied higher for a third consecutive week last week, gaining around 180 pips into the close 1.0046, and jabbing into the lower limits of a stacked supply formation coming in at 1.0126-1.0044 (upper zone is seen at 1.0239-1.0131). In addition to this, we also see a nice-looking AB=CD Harmonic pattern completing around 1.0046 region, thus forming one heck of a sell zone to keep an eye on this week! Should a sell-off be seen from here, the next level to keep a tab on comes in at 0.9796.
Weekly levels to watch this week fall in at: 1.0126-1.0044/0.9796.
Daily view: Similar to that of the weekly timeframe, daily action shows price ended the week kissing the underside of supply drawn from 1.0126-1.0055 (ties in lovely with the weekly supply area mentioned above at 1.0126-1.0044). Downside targets from this zone, however, can be seen around the swap support level at 0.9956, followed by 0.9896, also a swap support level.
Daily levels to watch this week fall in at: 1.0126-1.0055/0.9956/0.9896.
4hr view: The USD/CHF, as you can see, accelerated north during Friday’s trade on U.S. data. This took out several technical levels before entering into a phase of consolidation just below a clear resistance level coming in at 1.0083.
Now, given that this morning’s open 1.0049 has not made any change to current structure on this pair, our team is naturally swaying to the short-side of the market today/this week. Both the weekly and daily are trading around nice-looking sell zones at the moment (see above), and 4hr action is lurking just below a resistance.
Ultimately though, what we’re looking for is price to attack the 4hr resistance level today and hold firm. This would, combined with the higher timeframe picture, give us enough confidence to short this pair, targeting parity first and foremost.
Guys, even though the 4hr resistance level boasts higher timeframe confluence, we would still recommend waiting for confirmation here seeing, as price could still fake above this level to connect with psychological resistance 1.0100.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.0083 Tentative – confirmation required (Stop loss: dependent on where one confirms this level).
Weekly levels to watch this week fall in at: 1.0126-1.0044/0.9796.
Daily view: Similar to that of the weekly timeframe, daily action shows price ended the week kissing the underside of supply drawn from 1.0126-1.0055 (ties in lovely with the weekly supply area mentioned above at 1.0126-1.0044). Downside targets from this zone, however, can be seen around the swap support level at 0.9956, followed by 0.9896, also a swap support level.
Daily levels to watch this week fall in at: 1.0126-1.0055/0.9956/0.9896.
4hr view: The USD/CHF, as you can see, accelerated north during Friday’s trade on U.S. data. This took out several technical levels before entering into a phase of consolidation just below a clear resistance level coming in at 1.0083.
Now, given that this morning’s open 1.0049 has not made any change to current structure on this pair, our team is naturally swaying to the short-side of the market today/this week. Both the weekly and daily are trading around nice-looking sell zones at the moment (see above), and 4hr action is lurking just below a resistance.
Ultimately though, what we’re looking for is price to attack the 4hr resistance level today and hold firm. This would, combined with the higher timeframe picture, give us enough confidence to short this pair, targeting parity first and foremost.
Guys, even though the 4hr resistance level boasts higher timeframe confluence, we would still recommend waiting for confirmation here seeing, as price could still fake above this level to connect with psychological resistance 1.0100.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.0083 Tentative – confirmation required (Stop loss: dependent on where one confirms this level).
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