WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

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

Posted by Edward Moya on Jul 9, 2015 9:11:00 AM

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

Topics: USDCHF, $CHF, USD

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!