USDCHF Forex Trading Analysis

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USDCHF Daily Forex Analysis

This post is all about today’s analysis of USDCHF. The USDCHF Forex Trading Analysis will help the traders to get the ideas of trading this pair.

USDCHF Short Probabilities Game

Extending its bullish momentum for fifth consecutive day, the USDCHF pair has now risen to 8-day high level to currently trade within striking distance of the very important 200-day SMA region around 0.9840 region. Last week the pair reversed sharply after dropping to a multi-week low level. The recovery momentum got an additional boost from last week’s stronger-than-expected headline NFP print for July. Friday’s stellar jobs report has revived hopes of Fed rate-hike action, sooner rather than later. Meanwhile, the Swiss France came under fresh selling pressure after CPI data released on Monday showed deflationary pressure making a comeback, which might now fuel speculations of SNB action in the near-future.

USDCHF Forex Trading Analysis 1

USDCHF Long Entry Levels

More chances for a bullish continuation, what is confirmed by a recent multi time frame price action research, and important level zones. How to use levels – 1. Wait till the level is reached, 2. Reversal pattern, 3. Confirmation , 4. Entry, 5. Target (intraday) is a last level on the direction mentioned with arrows. Reviewing the most recent PA 1&2 period patterns we have: 1W bullish Pattern 1M Bearish Pattern Knowing the patterns of a higher time frame is very important. Sometimes they can conflict one to another, but it gives us the information of the possible correctional moves, or a start of a new direction, so basically, every time when conflict exists, you must examine a chart whether it is a correctional pattern appear.

USDCHF Forex Trading Analysis 2

USDCHF Forex Trading Analysis

USDCHF continues to bounce from hourly support given at 0.9830 (02/08/2016 low) while strong resistance is given at .9956 (30/05/2016 high). Volatility is very low and should indicate that this short-term bullish momentum is at stake. In the long-term, the pair is still trading in range since 2011 despite some turmoil when the SNB unpegged the CHF.

USDCHF Forex Trading Analysis

There were no major changes in Swiss unemployment data, which remained stable at 3.1% in July and 3.3% when seasonally adjusted. After peaking at 3.6% in February, there was fear of a growing upside momentum, which finally did not happen.