Long Swissy off of Support
Markets

Long Swissy off of Support

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We had discussed this setup in the USD/CHF Technical Analysis article posted earlier this week entitled, Be Careful of Pushing Short-USD . We were looking at two areas of potential support for top-side continuation plays in the Swissy, and after a failed attempt to hold .9737 yesterday prices have moved closer to the confluent zone of support between .9686-.9699. There are two different Fibonacci values within a 15-pip range, and this could be used as a basis for top-side entries.

Stops for the position can be set to be below the 23.6% retracement of the most recent major move (in green on the chart below) at .9622 to amount to approximately ~105 pips of risk with current price action ; and targets can be set to the confluent Fibonacci resistance zone around .9850, followed by a secondary profit target at .9948. This level of .9948 is particularly compelling as this is the 61.8% retracement of the major move in USD/CHF taking the 2010 high down to the 2011 low. This price had also functioned as the swing-high in late May before the pair went on a 400-pip deluge throughout the month of June.

Created with Marketscope/Trading Station II; prepared by James Stanley

--- Written by James Stanley , Analyst for DailyFX.com

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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