Supply at 1.0007-0.9988 may offer shorting opportunities today
Wednesday’s FOMC session provided the USD/CHF a ledge to pull itself towards highs of 0.9955, consequently breaking a two-day bearish phase. H4 support at 0.9918 remained firmly in the fold, with the candles appearing poised to now approach December’s opening level sited overhead at 0.9977, shadowed closely by H4 supply coming in at 1.0007-0.9988 which happens to contain the all-important 1.0000 (parity) figure within.
How the latest round of buying affected higher-timeframe structure, however, was negligible. Weekly price remains languishing under the 2016 yearly opening level at 1.0029. Support, according to this timeframe, does not enter the fold until we reach the 2018 yearly opening level coming in at 0.9744. The story on the daily timeframe, nevertheless, shows price action remains capped between notable resistance at 0.9986 and a support area coming in at 0.9866-0.9830.
Areas of consideration:
On either timeframe, there’s little stopping the unit from marching further north today, at least until we reach December’s opening level on the H4 timeframe at 0.9977.
Unfortunately, limited support is visible to base a trade at current price. Despite this, selling opportunities are an option should the pair trade higher today. The H4 supply mentioned above at 1.0007-0.9988 will, as it has done in the past, likely offer a platform for sellers to push lower. A fakeout through 0.9977 into the noted H4 supply that’s followed by a H4 close back under 0.9977 would, according to H4 and daily structure, be enough to validate a short in this market, targeting H4 support at 0.9918 as the initial take-profit zone.
How the latest round of buying affected higher-timeframe structure, however, was negligible. Weekly price remains languishing under the 2016 yearly opening level at 1.0029. Support, according to this timeframe, does not enter the fold until we reach the 2018 yearly opening level coming in at 0.9744. The story on the daily timeframe, nevertheless, shows price action remains capped between notable resistance at 0.9986 and a support area coming in at 0.9866-0.9830.
Areas of consideration:
On either timeframe, there’s little stopping the unit from marching further north today, at least until we reach December’s opening level on the H4 timeframe at 0.9977.
Unfortunately, limited support is visible to base a trade at current price. Despite this, selling opportunities are an option should the pair trade higher today. The H4 supply mentioned above at 1.0007-0.9988 will, as it has done in the past, likely offer a platform for sellers to push lower. A fakeout through 0.9977 into the noted H4 supply that’s followed by a H4 close back under 0.9977 would, according to H4 and daily structure, be enough to validate a short in this market, targeting H4 support at 0.9918 as the initial take-profit zone.
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