Talking Points
USDCHF stalls after achieving primary targets- 9153 resistance
Weekly opening range in focus- Break to validate near-term scalp bias
Broader outlook remains weighted to the topside above 8980
USDCHF Daily Chart
Chart Created Using FXCM Marketscope 2.0
Broader Technical Outlook
USDCHF achieves all three resistance objectives- 9153 resistance in focus (weekly high)
Primary objective 9188/98- Subsequent resistance targets at 9232 & 9313/16
Break sub weekly range low / Fib support at 9077/84 invalidates bullishscalp bias
Broader outlook remains weighted to the topside above- 8980
Momentum testing 60- Breach to validate bias
PendingRSI support trigger takes us out of long exposure
Event Risk: US Existing Home Sales on Tomorrow
USDCHF Scalp Chart
Notes: Half of our long exposure was booked at 9150 in DailyFX on Demand on Tuesday morning with the remainder of the trade getting stopped out on the move sub-9120. A brief break below trendline support dating back to the December lows was quickly recovered in pre-market trade today and our scalp bias continues to favor the topside while above the 9077/83 support region.
Note that the momentum signature has broadly held above the 40-theshold (supportive) and a breach above the weekly range high with RSI conviction puts us back on track with our initial objective eyed at 9188/98.
We will respect a break below the weekly range low with such a scenario invalidating our near-term bias and puts support targets into view at 9045 & 9024. Bottom line: the broader outlook remains constructive above 8980/88 and we will look to buy dips/breaks of resistance while above this threshold.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Key Threshold Grid
Entry/Exit Targets
Timeframe
Level
Significance
Resistance Target 1
30min
9120
Soft Resistance / Pivot
Bearish Invalidation
30min
9153
78.6% Retracement / Weekly ORH
Break Target 1
Daily / 30min
9188/98
61.8% Ext / 38.2% & 88.6% Retraces
Break Target 2
Daily
9233
200DMA / (Nov High at 9249)
Break Target 3
Daily / 30min
9313/18
100% Ext / 50% Retracement
Bullish Invalidation
Daily / 30min
9077/84
61.8% Retrace / Weekly ORL / TL Support
Break Target 1
30min
9045
Soft Support / Pivot / Last Week’s ORH
Break Target 2
30min
9020/24
50% Retrace / Jan 2nd Swing High / 50DMA
Break Target 3
Daily / 30min
8980/88
Jan 2nd Close / Last Week’s ORL / Pivot
Break Target 4
30min
8935
61.8% Retracement
Average True Range
Daily (20)
69
Profit Targets 17-19pips
*ORH: Opening Range High
*ORL: Opening Range Low
Other Setups in Play:
EURUSD Bias At Risk Above 1.3522- Weekly Opening Range in Focus
AUDCAD Scalps Target Key Support- Bias Bearish below 9746
Scalping EURNZD Correction- Bias Bullish Above 1.6154
EURAUD Scalps Eye Channel Breakout- Bias Bullish above 1.5020
—Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
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Source: Daily fx