ICM Technical Analysis : USD/CHF 28 February 2020

ICM Technical Analysis : USDCHF – 28 February 2020

A broad risk-averse tone dominated market sentiment Thursday, as yield on the 10-year US Treasury note hit record lows. After failing to glean much backing off 0.97, USD/CHF is seen trading a touch north of January’s opening level at 0.9671 on the H4 timeframe. Beyond this threshold, February’s opening level at 0.9636 lies in wait, with a break exposing 0.96.

Looking at the weekly timeframe this morning, we can see the current candle extending ground south of the 2018 yearly opening level at 0.9744, capped by trend line support-turned resistance, drawn from the low 0.9187. From current price, the 0.9613 January 13th low is seen as possible support, followed by 0.9410/0.9516 (green) – comprised of a 78.6% Fibonacci retracement at 0.9410, support at 0.9441 and a 127.2% AB=CD bullish correction (black arrows]) at 0.9516.

Following last week’s rejection off daily resistance at 0.9843, price has since daily thrashed support at 0.9771 and is on course to test Quasimodo support at 0.9600, sited just south of 0.9613 January 16th low.

Areas of consideration:

Demand for the safe-haven Swiss franc may continue today, setting the stage for possible short-based scenarios off the underside of 0.97. Void of local and higher-timeframe confluence, however, traders may seek additional confirmation before getting involved. In terms of downside targets, January’s opening level at 0.9671 rests as an initial base, followed by February’s opening level at 0.9636.

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