Dollar/Swissy Sees a Top Forming

USD/CHF (0.9646)

• Resistance levels: 0.9705, 0.9760, 0.9805
• Support Levels: 0.9590, 0.9555, 0.9505

The U.S. Dollar appears to be forming a short term top near 0.9740. Please refer to the above daily MT 4 chart. Note the new dark cloud cover below 0.9740. We need to close below the congestion area that ranges from 0.9590 to 0.9620 in order to challenge 0.9555.

In case of a reversal, we would need a daily close above 0.9705 in order to test the next key technical level 0.9760. It should be noted there is a congestion area starting from the top to 0.9760. This area will prove to be a challenge and, for now, cap gains.

Let’s talk strategy. I originally bought the USD/CHF at 0.9450 with an initial target of 0.9555. I am going to keep the position open for now to capture anymore buying and gains. I have a stop loss at 0.9450 in order to breakeven.

All trading strategies are for educational purposes and do not constitute trading advice.