USDCHF: Buying dips towards 0.9650 is preferred

Jim Langlands FX Charts

USDCHF: 0.9684

US$Chf had another squeeze higher on Tuesday, care of a further rally in EurChf, which is closing in on the previous floor of 1.2000 (today moving from 1.1945 to 1.1992). US$Chf moved up from 0.9650 to 0.9698 where it has come up against the 200 WMA but remains above the 200 DMA.

1 hour/4 hour indicators: Neutral

Daily Indicators: Turning Neutral

Weekly Indicators: Turning higher

Preferred Strategy: The short term momentum indicators look positive for further gains and there is no change to the view of trading from the long side, and as long as we remain above the rising trend support I prefer to buy the dips.

The longer term momentum indicators look as though they may be picking up a bit of speed, and if we do see a turn higher, then the 200 WMA/Weekly cloud base (0.9690/95) will again provide resistance, but above 0.9700 would open 0.9715 and then 0.9760.

If the dollar falls back below the 200 DMA/Session low at 0.9655/50, stops would be triggered and we could see a return to 0.9600, although that currently looks unlikely, but below which, further strong support will arrive at 0.9575/85.

Buying dips towards 0.9650 is preferred. SL @ 0.9620

Resistance		Support
0.9800	Minor	0.9655/50	200 DMA /Session low
0.9760	Minor	0.9625	Minor
0.9740	Minor	0.9600	Minor
0.9710	(61.8% of 1.0037/0.9187)	0.9585/80	100 DMA /17 Apr low / Rising trend support
0.9690/95/98	200 WMA/Weekly cloud base/Session high	0.9577/75	13 Apr low /(23.6% of 0.9187/0.9698)

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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