Tanalys

USD/CHF Reverses after Tagging Fibonacci Level

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Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote yesterday that “the USDCHF traded below the 7/11 low on Tuesday. This is interesting because the EURUSD has yet to trade above its 7/11 high (1.3205). That could change of course but as long as the EURUSD is below 1.3205, a divergence that has marked many turns in recent months is in place. Specific to USDCHF, watch for support from .9260 to .9280 (61.8% retracement is at .9367).” The low on Wednesday was .9357 and a key reversal unfolded.

FOREXTrading Strategy: Wrote yesterday that “we are in the right area to look for a low but the closest tradeable low isn’t until .9129.” There is enough evidence now to treat .9357 as a tradeable low. Order to go long at .9385, stop .9350. If stopped out then I’ll be looking for a low near .9290 or .9220.

LEVELS: .9217 .9291 .9383 .9451 .9498 .9533

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