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Talking Points:
- USD/CHF Technical Strategy: intermediate-term: mixed + choppy; short-term: congested.
- Swissy touched parity, albeit briefly, as old support became new resistance.
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In our last article, we looked at the vaulted ‘parity’ figure on USD/CHF as a decision point for directional biases. As we had shared, as long as price action remained below 1.0000, short strategies would be favored as the level around 1.0041 could offer a fairly attractive spot for stop placement. A day later, we saw a re-test of parity, but sellers emerged before the level could be crossed, thereby continuing the relatively bearish state in Swissy.
Chart prepared by James Stanley
But since that last resistance check at parity, we’ve seen a penchant for buyers to show up just above the .9900-handle. This led to a series of ‘higher-lows’ on Tuesday of this week, and we may be seeing the early stages of a bullish ramp within this bearish trend. On the chart below, we look at this recent ‘higher-low’ that showed-up shortly after this weekend’s gap-fill.
Chart prepared by James Stanley
For buyers looking to take a more conservative stance in Swissy, the zone at .9950 could be pivotal for such an approach. If price action can re-cross this confluent zone of prior support and current resistance, this would give us yet another ‘higher-high’ with which to plot top-side approaches.
— Written by James Stanley, Strategist for DailyFX.com
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