Buying opportunity on the USD/CHF

Consequent to the recent Fed-induced sell-off, there is a clear buying opportunity presenting itself on the USD/CHF at present. The H4 demand zone chalked up at 0.9749-0.9781 not only fuses with a 78.6% Fibonacci level at 0.9754, but it’s also bolstered by the weekly trendline extended from the low 0.9071. However, as highlighted in Monday’s report, even though trendlines are effective at predicting turning points, they are unfortunately prone to some very nasty fakeouts. With that, today’s objective is relatively simple. Look for a lower timeframe buy opportunity within the aforementioned H4 demand base, targeting 0.9800 first and foremost. This could be in the form of a lower timeframe supply area breaking, a lower timeframe trendline resistance being consumed or our favorite, a collection lower timeframe buying tails around a lower timeframe support.

Levels to watch/live orders:

• Buys: 0.9749-0.9781 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
• Sells: Flat (Stop loss: N/A).