WWM - Analytics


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    Today’s Trading Edge: USD/CHF rallies towards resistance

    WWM USDCHF JULY 9 2015

    USD/CHF has rallied on a rebound for the past three weeks that has raised the currency pair from the .9149 low to a confluence of resistance that includes the psychological .9500 handle and both the 100- and 200-day SMA. 

    The rebound was supported by the Swiss National Bank intervention efforts to weaken the franc.  Market investors may now choose to buy other safe-haven currencies because it is unknown whether the SNB will continue intervening. 

    If bullishness is able to breakout above the 200-day SMA, we could see the advance target the .9700 area.  It is around that area that we could see the formation of a bearish Gartley pattern.  Point D may be targeted by both the 61.8% Fibonacci retracement of the X to A leg and the 141.4% Fibonacci expansion level of the B to C decline.   If price extends above the .9820 level, the pattern may be invalidated. 

    Any sustained weakness could eventually find support from the key .9149 support level.  A greater retreat could target the .90 handle.

    The trade: Sell USD/CHF at .9710 with a stop loss at .9810 and a take profit at .9510.  The Risk/Reward Ratio is 1:2.

    Edward J. Moya

    Chief Technical Strategist

    WorldWideMarkets Online Trading

    Forex Trading Demo

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