USDCHF: Neutral

Jim Langlands FX Charts

USDCHF: 0.9624

Preferred 24-hour Strategy: Range trade 0.9590/0.9685?

US$Chf did its own thing on Monday, in taking out some minor support levels before running into decent support at the 0.9590/00 level and then bouncing, to sit back within the middle of its recent range.

Once again, the short term momentum indicators are mixed/flat and on the downside, good support still lies at 0.9590/ 0.9600 although if this is taken out there is not too much to hold it up until 0.9550, where the 200 WMA has done a good job of propping the dollar up over the last couple of weeks. Below there would be a longer term concern for the dollar and could see a run back to previous, 2016 lows at 0.9520/30, to 0.9500, and potentially a fair bit lower.

On the topside, the dollar peaked at 0.9658 on Monday. Above here could see a return to the 0.9675/85 minor resistance beyond which would revisit Friday’s high of 0.9700. This area should again prove a significant hurdle although if/when taken out, then we could quickly head toward 0.9730 and then to 0.9745 although I don’t see it up here today.

More choppy trade looks likely, generally within the 0.9600/0.9700 range, possibly until the ECB on Thursday. If anything, as with yesterday, I mildly prefer to trade from the short side but not convinced, especially if the SNB are underpinning the dollar.

24 Hour Outlook: Neutral		Medium Term: Neutral
Resistance		Support
0.9760	(38.2% of 1.0099/0.9555)	0.9595	Session low
0.9730	Descending trend resistance	0.9591	7 July low
0.9700	14 July high	0.9575	Minor
0.9785	Minor	0.9555/52	3 July low/29 June low /200 WMA
0.9665	Minor	0.9525	Minor

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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