This recent surge in buying was a thing of beauty from a technician’s standpoint. Not only was price trading within shouting distance of a major weekly demand at 105.19-107.54, but it was also seen loitering within daily demand which sat on top of the above said weekly demand at 107.60-108.35. We would have been kicking ourselves if we missed this move, but seeing as how we’re long the USD/CHF right now we’re not too concerned! For traders who remain long this pair, taking note of the 110.00 handle hanging just above H4 supply at 109.90-109.54 might be a good move. The reason being is it also represents a major line of weekly resistance coming in at 110.09, which has the potential to halt this present correction.
This brings us onto the sell-side of this market. At first glance, shorting the weekly resistance seems attractive, but when looking at the , upside movement could potentially continue north towards the 110.96 mark –clear resistance. Given this, an ideal spot to look for shorts on the H4 chart, at least in our opinion, would be in between the H4 supply at 110.63-110.31 and the round-number 111.00 (pink circle).