ICM Technical Analysis : USD/CHF 10 March 2020

ICM Technical Analysis : USDCHF – 10 March 2020

The safe-haven Swiss franc found demand amid the coronavirus-led global flight to safety on Monday. This, alongside yield on the 10-year US Treasury note dropping to all-time lows of 0.36% and the US dollar index exploring ground south of 95.00, led USD/CHF to lows at 0.9182.

The weekly timeframe reveals price action nervously trading around Quasimodo support at 0.9255, with a break of this formation shining the spotlight on support coming in at 0.9151. A recovery on this timeframe could extend as far north as resistance from 0.9447.

0.92 is holding on the H4 timeframe as is 0.93 as resistance, with the candles beginning to shape what appears to be a consolidation. A decisive break of 0.92 will draw in buyers from weekly support at 0.9151, whereas a break north of 0.93 has resistance plotted at 0.9358.

Areas of consideration:

A whipsaw through 0.92, tripping sell-stop liquidity, to weekly support at 0.9151, followed by a H4 close back above 0.92 will likely be viewed as a buy signal. Entry on the close of the breakout candle is an option, targeting 0.93 as an initial take-profit target.

A similar scenario, in which H4 action breaks 0.93 to the upside, might take shape, targeting 0.9358. followed by 0.94.

Disclaimer: The information contained in this material is intended for general advice only.