USDCHF remain bearish for a further drop

27 January, 2017

Sell below 1.0026. Stop loss at 1.0096. Take profit at 0.9926.

Reason for the trading strategy (technically):

We remain bearish below 1.0026 resistance (swing high resistance, descending resistance, Fibonacci projection, Fibonacci retracement) for a further push down to 0.9926 support (Fibonacci projection).

Stochastic (21,5,3) is seeing strong resistance below the 91% level and still has good downside potential.

Reason for the trading strategy (fundamentally):

The main news event today is the U.S. Durable Goods Orders. Durable goods are typically sensitive to economic changes. When consumers become sceptical about economic conditions, sales of durable goods are one of the first to be impacted since consumers can delay purchases of durable items, like cars and televisions, only spending money on necessities in times of economic hardship. Conversely, when consumer confidence is restored, orders for durable goods rebound quickly. The headline figure is expressed as a percentage change from previous months. A decrease in this value would mean a weaker USD. Forecasts for this month is expecting a significant rise from last month which means a stronger USD. This goes against our bearish USDCHF view, hence it is important to exercise caution on this trade.

The other major news item today affecting USD is the Gross Domestic Product (GBP) which measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy's health. If the actual release is better than the forecast, that means it is good for the currency and we can expect USD to strengthen. However, if the actual release is less than the forecast, that means it is bad for USD and we can expect USD to weaken. Our current forecast is for a strong drop from 3.5% to 2.2% which means we could expect a weaker USD, this goes in line with our bearish USDCHF view today.


Source link   Presented by Exness

USD/CHF after the breakdown

Last week USD/CHF broke below the uptrend support line of 2018. It's now providing resistance for the price at 0.9965. Another obstacle on the upside is...

USDCHF profit target reached perfectly

Price has shot down perfectly from our selling level and reached our profit targets. We prepare to buy above major support at 0.9598 (Fibonacci retracement...

USDCHF approaching major resistance

Price has reached our profit target perfectly from Monday. We prepare to sell below major resistance at 0.9770 (Fibonacci extension, horizontal swing...


USDCHF dropping perfectly

Price has started to drop really nicely from our selling area and we remain bearish for a further drop below 0.9735 resistance...

USDCHF testing major resistance

Sell below 0.9956. Stop loss at 0.9975. Take profit at 0.9896. Stochastic (34,5,3) is seeing descending resistance...

Dollar/Swissie Eyes Parity

USD/CHF is eyeing a break back below parity and if this is seen, look for the 200 day...


USDCHF at major resistance

The major news item driving USD today is the Nonfarm Payrolls. The Nonfarm Payrolls measures the change in the number of people...

USDCHF look to buy on strong support

Reason for the trading strategy (technically): Price continues to test major support at 0.9925 (Fibonacci retracement...

USDCHF profit target reached, time to start buying

Price dropped once again perfectly as expected and reached our profit target. We now turn bullish above 1.0071 support (Fibonacci retracement, horizontal support) for a push up to 1.0124 resistance (Fibonacci retracement, horizontal overlap resistance)...

  


Share it on:   or