1.01 marks an important support, traders...

USD/CHF:

Mounting US/China trade tensions underpinned the Swiss franc’s safe-haven demand Thursday, exerting downward pressure on the USD/CHF.

Technically, the H4 candles elbowed their way through the lower edge of an ascending channel formation (1.0126/1.0203), and tested a session low of 1.0123. Although short-term traders likely have their crosshairs fixed on the 1.01 handle as the next support target, daily structure also boasts strong support (yellow) between 1.0102/1.0140. Another important point worth adding is weekly support at 1.0110 is also seen housed within the walls of the said daily support zone.

In light of the support surrounding the 1.01 handle, this figure, should the market test this far south, has the potential to rebound price significantly.

Areas of consideration:

While 1.01 is an incredibly attractive support, traders are urged to consider waiting for additional confirmation before pressing the buy button (entry and risk parameters can be determined according to the confirmation technique selected). This is simply due to the threat of a fakeout emerging through 1.01 (to run stops).

Today’s data points: US CPI m/m; US Core CPI m/m; FOMC Member Brainard and Williams Speak