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Over the last 48 hours of trade, the USDCHF has confirmed the pattern we discussed last week. The pair managed to test both support and resistance between Friday and Monday.
Although a confirmed setup remains elusive, the past two sessions have validated what is happening here.
That said, it’s still unclear whether this will turn into a bull flag or not. The 620 pip rally between early September and late October suggests bulls are in control, but we need more evidence before we can act.
A daily close at 5 pm EST above 0.9850 would confirm the long opportunity. The next key resistance from there comes in at 0.9940 followed by 1.0030/40.
As long as channel support near 0.9700 holds on a daily closing basis, I will continue to favor an upside break. And if we do get a confirmed break of resistance, my long-term target will be the multi-year range top at 1.0330.
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