ICM Technical Analysis : USD/CHF 12 March 2020

ICM Technical Analysis : USDCHF – 12 March 2020

USD/CHF, although tipped to capitalise on recent gains based on higher-timeframe technical structure, scored modest losses Wednesday amid reviving safe-haven demand for the Swiss franc.

Quasimodo support on the weekly timeframe at 0.9255 recently capped downside, albeit after a brief spell to lows at 0.9182 (levels not seen since June 2015). Further recovery on this timeframe could extend as far north as resistance from 0.9447.

H4 action extended gains north of 0.92, running through 0.93 and retesting the latter as support Tuesday for an additional push to 0.94. This round number remained as resistance yesterday, with a break, as you can see, exposing the weekly resistance at 0.9447. Note the relative strength index (RSI) recently overthrew 50.00 after bottoming at 15.00 at the beginning of the week.

Areas of consideration:

A whipsaw through 0.94, tripping buy-stop liquidity, to weekly resistance at 0.9447, could be in the offing. While the recent recovery off weekly support likely attracted early buyers, upside lacks conviction until the weekly resistance mentioned above at 0.9447 is consumed. This level, therefore, may be an area fresh sellers join and current longs liquidate partial profits (essentially selling, too).

Conservative traders may want a H4 close back beneath 0.94 to form, after testing weekly resistance. Entry on the breakout candle is then an option, targeting 0.93 as the initial port of call.

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