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Week´s top three trades: USD/CHF

The USDCHF edged higher Friday, closing just shy of the November high.  Although the USDCHF can be expected to consolidate further to start the week, odds are now elevated for a test of the psychologically key 0.90 whole figure level ahead of the Xmas lull.  A higher December high/low versus the November high/low now appears likely, which if successful, further reinforces the major bottom trying to form since early 2024 (as can be seen easier on a 3 month or monthly chart on tradingview.com).  Although healthy profittaking may arrive as early as Monday with the US Flash Manufacturing and Services PMI or Tuesday with the US retail sales, a resumption to the upside is likely by Wednesday with the US Federal Funds rate, FOMC statement and press conference, Thursday with the US GDP and unemployment claims or Friday with the US core PCE price index.  The weekly and daily RSI, Stochastics and MACD are bottomish, rallying  or consolidating recent gains.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter)

Author

Darren Chu, CFA

Darren Chu, CFA

Tradable Patterns

Darren Chu, CFA, ex-Intercontinental Exchange | NYSE Liffe, TMX Group, CMC Markets, is the founder of Tradable Patterns – a publisher of futures/FX technical analysis on Bloomberg, LSEG (Refinitiv) and Factset.

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