There were plenty of big winners last week, and that’s not even counting Timothée Chalamet at the Golden Globes.
I’m talking about those who traded USD/CHF’s bounce from a long-term support!
Now that the bulls have gotten some momentum, will USD/CHF see an extended uptrend?
USD/CHF 4-hour Forex Chart by TradingView
The U.S. dollar hasn’t gotten much love in the last trading sessions, as markets questioned the Fed’s independence and traders cautiously moved into non-USD positions ahead of the U.S. CPI release.
As a result, popular U.S. dollar alternatives like the Swiss franc picked up some momentum, even with geopolitical tensions and shaky risk sentiment hanging over Europe.
Was Monday’s USD weakness just a glitch? Or the start of a longer-term trend?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CHF, which recently bounced from long-term support, has put in a higher swing low after getting rejected near .8020.
We’re closely watching the .7975 area to see if it holds as trend pullback support. As you can see, the level lines up with the Pivot Point line, the 38.2% Fibonacci retracement of last week’s upswing, and the 200 SMA on the 4-hour time frame.
If the long wicks on recent candlesticks continue to attract bullish demand, USD/CHF could make another run at the .8020 highs and possibly push to new January highs above .8000.
On the flip side, another bout of U.S. dollar weakness could send USD/CHF below its trend line support and open the door for a move back toward the .7950 inflection point.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
