Forex Marketz Daily Forex News – Fully Markets Update
USD/CHF (0.8725)
Trade Strategy: Stand Aside
- Resistance Levels: 0.9040, 0.9270, 0.95
- Support Levels: 0.8758, 0.8580, 0.83
I have been waiting for the dust to settle in the USD/CHF market before looking at a trading strategy. Since the SNB surprised us with ending its peg against the euro, the Dollar has been recovering against the Swiss franc. Please see the below daily MT 4 chart.
We see a minor resistance at 0.8730, which needs to be broken for 0.90 and higher. The next key pivot, to the upside, is at 0.9040. A daily close above this level will challenge 0.9270. Should the CHF strengthen, pushing the USD/CHF lower, then support is at 0.8758. A break below this level will then challenge the technical support at 0.8580.
Price action is not very stable or telling right now. The position, price wise, is not telling us much. We are also close to a support level which means taking a short trade, from a risk to reward perspective, is not right. For now, I am opting to stand aside watching this market as it settles down. Once a stronger buy or sell opportunity emerges, I will make a trade.
