U.S. Markets closed

USD/CHF Gets Tricky Intraday; Still Bullish but on Dips

Jamie Saettele, CMT


eliottWaves_usd-chf_body_usdchf.png, USD/CHF Gets Tricky Intraday; Still Bullish but on Dips

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Are you new to FX or curious about your trading IQ?

FOREXAnalysis: An inverse head and shoulders pattern that began exactly 8 months ago (9/14/12) was confirmed last week in the USDCHF. The target from the pattern is 1.0111. In the ‘year of the breakout’, ignore such patterns at your own risk. The top side of the pattern’s neckline served as support last Thursday and price has tested corrective channel resistance on 3 days since last Wednesday. A break above the channel would indicate that the rally is accelerating from that point to much higher levels…and eliminate a corrective interpretation of the advance from .9021. The blue channel is a microcosm of the black channel. Any setbacks are viewed as opportunities to buy against .9520. If price fails to hold .9647, then look for a low near .9577.

FOREXTrading Strategy: Bullish above .9520 with 1.0100 target.

LEVELS: .9520 .9577 .9642 .9722 .9760 .9898

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.