Well done to those who shorted 0.9977 - first TP hit.
USD/CHF:
USD/CHF sellers kicked off the week on a high note, forcing the H4 candles lower from December’s opening level priced in at 0.9977. The move was backed by broad-based USD selling and a flight-to-safety boosting demand for the Swiss Franc. For those who read Monday’s briefing you may recall the research team highlighted 0.9977 as a potential sell zone due to the following:
• Strong H4 supply circulating above at 1.0007-0.9988.
• 1.0000 (parity) housed within the supply zone.
• Daily resistance located at 0.9986. As you can see, this level (yellow) boasts incredibly strong historical significance.
Well done to any of our readers who managed to sell 0.9977 Monday as H4 action struck the first take-profit target: support at 0.9918.
Areas of consideration:
Aside from the short out of 0.9977, further downside, according to the daily timeframe which shows room to stretch as far south as a support area coming in at 0.9866-0.9830, could be on the cards.
The next support target beyond the current H4 support level is the 0.99 handle on the H4 timeframe, followed by the top edge of the aforementioned daily support area at 0.9866.
A H4 close beneath 0.99, therefore, opens up the path to possible intraday shorts, targeting 0.9866, followed by H4 support at 0.9854. It is recommended, however, only to consider positions sub 0.99 that offer at least 1:1 risk/reward ratio to 0.9866, whether that be on a breakout play or on a retest to the underside of 0.99.
Today’s data points: US Building Permits and Housing Starts.
USD/CHF sellers kicked off the week on a high note, forcing the H4 candles lower from December’s opening level priced in at 0.9977. The move was backed by broad-based USD selling and a flight-to-safety boosting demand for the Swiss Franc. For those who read Monday’s briefing you may recall the research team highlighted 0.9977 as a potential sell zone due to the following:
• Strong H4 supply circulating above at 1.0007-0.9988.
• 1.0000 (parity) housed within the supply zone.
• Daily resistance located at 0.9986. As you can see, this level (yellow) boasts incredibly strong historical significance.
Well done to any of our readers who managed to sell 0.9977 Monday as H4 action struck the first take-profit target: support at 0.9918.
Areas of consideration:
Aside from the short out of 0.9977, further downside, according to the daily timeframe which shows room to stretch as far south as a support area coming in at 0.9866-0.9830, could be on the cards.
The next support target beyond the current H4 support level is the 0.99 handle on the H4 timeframe, followed by the top edge of the aforementioned daily support area at 0.9866.
A H4 close beneath 0.99, therefore, opens up the path to possible intraday shorts, targeting 0.9866, followed by H4 support at 0.9854. It is recommended, however, only to consider positions sub 0.99 that offer at least 1:1 risk/reward ratio to 0.9866, whether that be on a breakout play or on a retest to the underside of 0.99.
Today’s data points: US Building Permits and Housing Starts.
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