USD/CHF looks ready to extend its trend after consolidating near a pullback level!
Think the dollar can make more pips against the franc in the next couple of days?
We’re checkin’ out the 1-hour time frame:
If you’ve been watching USD/CHF, then you’ll know that the pair has been in an observable uptrend since late July when it found support from the .8550 levels.
USD/CHF took a breather from making new highs this week, as it pulled back to the .8820 levels after getting rejected at the .8875 area.
Can USD/CHF extend its uptrend?
On a technical basis, the odds favor the bulls as USD/CHF can’t seem to drop below the mid-channel line that happens to be close to a previous resistance, the 38.2% Fibonacci retracement of last week’s upswing, and the 100 and 200 SMAs on the 1-hour time frame.
Of course, today’s U.S. economic reports may still change the tides for the U.S. dollar.
Keep in mind that today’s S&P home price index, CB consumer confidence, and JOLTS job openings are all expected to print weaker numbers than their previous releases.
If traders focus on weak U.S. reports and couple that with Fed Chairman Powell’s less-hawkish-than-expected remarks over the weekend, then USD may lose pips against CHF.
Until USD/CHF meets its countertrend catalysts, though, we can still take advantage of the pair finding support from the .8820 area.
Long trades from current levels or from retests of the .8820 zone may yield a good enough risk ratio especially if USD/CHF revisits its .8875 highs or makes new monthly highs before the month ends.
If you’d rather get in at more conservative levels, then you can also wait for today’s U.S. data releases and see if USD/CHF encounters enough selling to retest lower Fibonacci levels.
But if you’re in for longer-term trades and you’d rather confirm further USD strength, then you can also consider buying at new monthly highs and then aiming for higher areas of interest like .8925 or .9000.
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.