USDCHF – Trend line support breaks

Trend line support breaks

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Technical

Monthly: For he last 84 months USDCHF has held within a bullish channel formation. Level close to 1.0340 continue to cap buying.  A full AB=CD formation would the the pair to 1.1450. We have seen spikes in both directions for the last three months, highlighting indecision at current levels. The psychological 1.0000 (Big Figure) continues to be pivotal.

Weekly:  We have seen sideways price action for the last 15 weeks. The trend of higher highs (currently 1.0070) continues to cap buying.  A break lower and trend line support is not seen until 0.9462. This is in between the 61.8% and 78.6% Fibonacci level of of 0.9524 and 0.9376

Daily: Price action has broken through the 0.9900 support and the upward trending support. Although there are several horizontal hurdles above 0.9850, bias is now negative after the failure to break the psychological 1.0000 barrier. We look to set shorts to target a move to the previous swing low (0.9788) on the way to the 38.2% Fibonacci retracement at 0.9730

Action:

We look to Sell in front of 0.9900

Stop: 1.0000

Targets:  0.9730 and 0.9630

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