USD/CHF likes to trade in clear defined steps at times and is very good at respecting broken levels when the price returns.
USD/CHF h4 chart 04 10 2013
The 0.9030 had been a place of resistance since the cross fell through it from 0.9080 and it’s under threat today as well. It’s held so far after three attempts in the last hour or so and is being dragged up vie EUR/CHF which is also trying to break resistance at 1.2270/80.
I got out my shorts from last week after a third failure at properly cracking 0.9000 on the 2nd. It’s another trade I’m looking at to take advantage of the US problems and I’m toying with shorting it again either here or up towards 0.9080, if it goes there. Being Friday I’m wary of entering a dollar short trade and holding it over the weekend so I’m just after nicking a few pips from these levels. What I would prefer is to pick up a long down at the Feb 2012 low at 0.8927.
USD/CHF weekly chart 04 10 2013
The level marks a nice weekly double bottom and it would make a good point to start building longs while we wait for the yanks to sort themselves out.
While the cross is looking up I wouldn’t be too hasty to jump on the bandwagon just yet as I still feel there’s plenty of two directional moves to come intraday.
