Author: Greg Michalowski

Moves above channel trend line 

The USDCHF has also pushed higher in trading today as a result of the stronger US employment report.  

In the process, the pairs price has pushed above the topside channel trend line on the hourly chart currently at 0.9800 (see chart above), and also the December 8 swing high at 0.98168 (see daily chart below). The high has extended to 0.98416. The next price target comes in at the  0.9892 level  (underside of the trend line connecting lows from August and December).  

The price is currently back down and testing the 0.9816 level. So there is some week end squaring up.

Looking at the 5 minute chart , the 38.2% of the move to the upside today comes in at 0.97994.   With the 0.9800 trendline level on the hourly chart at the same level, I will be expecting that support buyers come in against the level on a test. However, be aware that we are heading into the weekend and traders like to square up.  So the potential exists for more choppy trading action over the next hour or so as European traders look to exit for the weekend. Expect more of an up and down trading market.

Join the Conversation