USDCHF: Buy @ 0.9740

Jim Langlands FX Charts

USDCHF: 0.9781

US$Chf had another squeeze higher on Monday as it moved up from 0.9750 to 0.9787, closing at the highs.

1 hour/4 hour indicators: Turning higher

Daily Indicators: Turning higher

Weekly Indicators: Turning higher

Preferred Strategy: The short term momentum indicators still look positive for further gains, although the hourlies appear to show some minor bearish divergence, but there is no change to the view of trading from the long side. Minor support will arrive at 0.9750 and at 0.9735 ahead of Friday’s low of 0.9705 and buying dips is preferred. Further out, if the dollar falls back below the 0.9690 (200 WMA/Weekly cloud base), we could then see a return to the 200 DMA/18 Apr low at 0.9655/50, below which stops would be triggered and we could see a return to 0.9625, although that currently looks unlikely. As long as we remain above the rising trend support I prefer to buy the dips although the recent acceleration higher has now seen the pair move away from the trendline which currently lies some way off, at 0.9625.

On the topside, the longer term momentum indicators are now picking up a bit of speed and beyond 0.9785/90 could see a run towards 0.9805/15 and then on to 0.9835 although possibly not today. If wrong, further gains could open the way to 0.9900 and then to 0.9975/1.0000.

Buy US$Chf @ 0.9740. SL @ 0.9785, TP @ 0.9835

Resistance		Support
0.9845	10 Jan high	0.9750	Minor
0.9835	(76.4% of 1.0038/0.9187)	0.9736	Session low
0.9815	11 Jan high	0.9705	Friday low
0.9800	Minor	0.9690	200 WMA/Weekly cloud base
0.9787	Session high/100 WMA	0.9665	19 April low

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Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

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