USDCHF Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
USDCHF Correction Underway- Broader bias remains weighted to the topside
Scalp Bias bearish below 9513-9530 (near-term)
Interim support 9400- Long-standing pivot in price action dating back to 2012
Support range objective 9360- 9368 (note 200DMA at 9358) – Break targets 9260
Breach above weekly opening range (9446- 9533) Puts long scalps back into play
Topside objectives 9600 (Fib Confluence) and 9757- 9780
Daily RSI still some downside possible here- Look for basing 35-40 range
Key Events Ahead: Fed’s Beige Book, Humphrey-Hawkins Testimony on Wednesday & Thursday
USDCHF Scalp Chart
Scalp Notes: Although out longer-term bias remains weighted to the topside, we are looking for a new low to offer favorable long entries. Weekly opening range break suggests correction has a bit further to go- However with intra-day RSI holding in oversold territory, we’ll wait for the trigger to reset with near-term rallies to be sold. (For more aggressive traders a topside RSI trigger breach could offer near-term longs into the subsequent resistance target.) A break back within the initial weekly opening range puts us neutral pending an RSI short trigger or breach above our bearish invalidation point at 9530. Such a scenario puts our longer-term targets back in view. Bottom line: looking for a new low to establish long position as the pair continues to consolidate into the apex of a multi-year triangle consolidation.
* 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
Daily / 30min
9440- 9452
50% Retracement / 23.6% Fib Extension
Resistance Target 2
30min
9485
Soft Resistance / Pivot
Bearish Invalidation
Daily / 30min
9515 – 9530
38.2% Retrace / Weekly High / Pivot
Break Target 1
30min
9565
Soft Resistance / Pivot
Break Target 2
Daily / 30min
9604
23.6% & 61.8% Fib Retracements
Break Target 3
30min
9630
Soft Resistance / Pivot
Support Target 1
30min
9400
38.2% Fib Extension
Bullish Invalidation
Daily / 30min
9360- 9368
61.8% Retracement / 50% Fib Ext
Break Target 1
30min
9320
61.8% Fib Extension
Break Target 2
30min
9285
Soft Support / Pivot
Break Target 3
Daily / 30min
9260- 9263
78.6% Retracements (Confluence)
Break Target 4
Daily / 30min
9200- 9216
88.6% Retrace / June 13 Close / April Low
Average True Range
Daily
100
Profit Targets 22-25pips
Other Scalp Setups in Play- EURUSD Correction in Play- Short Scalps Eye Break of 1.3000
Reviews today’s Scalp Webinar for further insights and current trade setups
For updates on this scalp and more setups follow him on Twitter @MBForex
—Written by Michael Boutros, Currency Strategist with DailyFX
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
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