The #USDCHF is one to watch, and now the price is breaking through last week’s highs. In the #ForexMarketOutlook, we identified the need to see buyers enter the market, and now we are seeing that we could look for long opportunities.
Today, we’ll be going over USD/CHF as the price is breaking through the current weekly high.
We featured USD/CHF in the Week Ahead video because we saw signs of the US Dollar gaining strength and the Swiss Franc was at the top of the strength meter.
Typically, when you have a weak currency and a strong one, we see a huge trend in a particular direction.
However, when they are on opposite sides of the strength meter, we could also see a reversal. It all depends on where the price is and what the price action setup is.
The USD/CHF has been in low ranging candlesticks in the past couple of weeks. It was approaching key support areas like the one being shown on the chart below.
The USD/CHF market was the one to watch for us this week. The analysis we made on the Week Ahead video suggested that we could see a reversal to this market. This information with the weekly price action suggested sellers were running out of momentum.
Once we saw that and the USD buying back to the market, we expected to see a reversal but we can still look for long opportunities.
The price didn’t change trend on the daily timeframe. We had a strong weekly high at 0.9030, where the price found resistance. We want to make sure that the price breaks above this area first before looking for long opportunities.
There were some decent ISM numbers out of the US, so we’re expecting the USD strength to continue. We have to be careful because the data is tomorrow, which could put a spanner in the works in the USD strength.
Right now, we can only trade what we see, which is the price breaking through these highs. So, we could look for an early opportunity on a lower timeframe to trade from the previous weekly high at 0.9030.
The daily timeframe shows the price breaking the weekly high of 0.9030. If the price closes above this level, we can expect the market to break higher as traders will look to buy the breakout.
Alternatively, we can wait for a couple of closes above this area because we can now see signs of a change of trend.
In the four-hour timeframe, the price is starting to break out of the zone where the market found sellers before. If we continue up, we can look for long opportunities from this previous weekly high.
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