Talking Points
- Reverses from key technical level
- Cyclical outlook turning more positive in the days ahead
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USD/CHF has moved steadily higher since finding support last week just ahead of the 1st square root relationship of the 2013 low at .8890. With the near-term cyclical picture turning more positive over the next few days and the exchange rate overcoming key Fibonacci and psychological resistance at .9000 we like the risk to reward of getting long the pair. We cannot rule out some sideways price action before the rate heads higher in earnest so we like buying on any moderate weakness back towards the 2nd square root relationship of the 2013 low at .8985. A daily close below last week’s closing low at .8935 would undermine the immediate upside potential and turn us negative on the exchange rate.
USD/CHF Daily Chart: January 30, 2014
Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risks in Coming Sessions:
LEVELS TO WATCH
Resistance: .9045 (Gann), .9080 (Gann)
Support: .8985 (Gann), .8935 (Last week’s closing low)
Strategy: Buy USD/CHF on weakness
Entry: Buy USD/CHF at .9005
Stop: 1-day close below .8935
Target: .9145
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
Are you looking for other ways to pinpoint support and resistance levels? Take our free tutorial on using Fibonacci retracements.
To contact Kristian, e-mail [email protected]. Follow me on Twitter at@KKerrFX.
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