Interesting P.A on the Swissie this morning, traders...
The US dollar was a shade firmer on the Swiss franc Monday, up 0.08%. Although lacking volatility, yesterday’s movement accomplished a couple of notable feats. On the H4 scale, the unit climbed above 0.99 which, although currently capped by nearby channel resistance (extended from the high 0.9877), is being retested as support in early trade this morning. Further buying from this point may lead an approach towards August’s opening level at 0.9934, closely fixed by Quasimodo resistance at 0.9946.
Higher-timeframe analysis has the weekly candles driving higher into the walls of a supply zone coming in at 1.0014-0.9892 after forming an outside day formation last week. In the event buyers brush aside the said supply this week (unlikely a straightforward feat), resistance at 1.0110 is in view, as is a long-term trend line support-turned resistance taken from the low 0.9187.
A closer interpretation of price action on the daily timeframe shows an impressive recovery off trend line support (etched from the low 0.9542), which eventually dethroned a trend line resistance extended from the high 1.0226. What’s also notable from a technical standpoint is the ABCD correction (black arrows) at 0.9923ish (a potential bearish cue). Areas of interest beyond the said resistances fall on Quasimodo resistance at 0.9963, a 200-day SMA (orange – 0.9955) and resistance coming in from 0.9986.
Areas of consideration:
With a trend line break to the upside visible on the daily timeframe, the immediate trend pointing in a northerly direction and H4 action retesting 0.99, buying opportunities are likely being considered. Whether buyers have sufficient oomph to reach August’s opening level at 0.9934/Quasimodo resistance at 0.9946, though, is difficult to judge. Not only must buyers contend with H4 channel resistance, there’s also the daily ABCD correction completing around 0.9923 and, of course, weekly supply at 1.0014-0.9892.
Strong cases for both sides of the market exist this morning.
Higher-timeframe analysis has the weekly candles driving higher into the walls of a supply zone coming in at 1.0014-0.9892 after forming an outside day formation last week. In the event buyers brush aside the said supply this week (unlikely a straightforward feat), resistance at 1.0110 is in view, as is a long-term trend line support-turned resistance taken from the low 0.9187.
A closer interpretation of price action on the daily timeframe shows an impressive recovery off trend line support (etched from the low 0.9542), which eventually dethroned a trend line resistance extended from the high 1.0226. What’s also notable from a technical standpoint is the ABCD correction (black arrows) at 0.9923ish (a potential bearish cue). Areas of interest beyond the said resistances fall on Quasimodo resistance at 0.9963, a 200-day SMA (orange – 0.9955) and resistance coming in from 0.9986.
Areas of consideration:
With a trend line break to the upside visible on the daily timeframe, the immediate trend pointing in a northerly direction and H4 action retesting 0.99, buying opportunities are likely being considered. Whether buyers have sufficient oomph to reach August’s opening level at 0.9934/Quasimodo resistance at 0.9946, though, is difficult to judge. Not only must buyers contend with H4 channel resistance, there’s also the daily ABCD correction completing around 0.9923 and, of course, weekly supply at 1.0014-0.9892.
Strong cases for both sides of the market exist this morning.
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