Best Financial Markets Analysis Article With a recovery phase in the US Dollar now deemed to be in progress (see last week’s US Dollar Index Update) we now look at the technical levels on the USD/CHF chart, and what could give this pair a boost.

The FX Trader’s view

WEEKLY CHART:

From a longer term perspective the previous erosion of the projected bear channel top was the first sign that bulls were gaining strength at the expense of the long term bears.

Good support has been found from near a 76.4% pullback level.

DAILY CHART:

Initial recovery from the early Jun low found clear resistance from near the 1.0974 13-May low.

This, and the higher 1.1027 38.2% level, offers first key resistance here, with breaks above these confirming that a base is in place.

But a further hurdle comes in at 1.1157/64, 19-Mar low and 50%, ahead of the bear channel top projection around 1.1250 just now. So much work must be done before longer term bulls can start reasserting control.

Meanwhile, for speculative bulls we had suggested a

1.0770-30 buy area in this week’s FX Trading Guide, with preference towards the high end of this. Fortunate longs thus triggered (1.0758 low seen) had initial stops just below the 1.0648 11-Jun low, aiming for 1.0980/1.1000 for partial profits, and then raising stops to just below 1.0758. More profit-taking may be targeted towards 1.1150.

Philip Allwright

By Mark Sturdy
Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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