Daily Price Action

USDCHF Rallies Back to 2017 Resistance


Over the weekend I pointed out how the USDCHF bulls are refusing to go down without a fight. Less than 48 hours into the new trading week buyers are once again pressuring trend line resistance from the current 2017 high.

Another thing I mentioned over the weekend was my lack of interest in shorting the pair. The bounce from the multi-year range low at 0.9435 suggests that demand will likely continue to outweigh supply.

I’ve always maintained the idea that a market is range bound until it isn’t. In other words, as long as 0.9435 holds as support on a daily closing basis, a move higher toward 1.0100 must be respected.

However, buyers aren’t out of the woods just yet. Although the 0.9770 horizontal level is somewhat of a wash, the trend line from the 2017 high is very much in play.

It’s going to take a daily close (5 pm EST) above it to open the door to upside targets. The first being the April and May highs near 1.0100.

For those keeping track, the trend line in question appears to come in at 0.9810 at the time of this writing. A close above it would have us watching for a buying opportunity on a retest of the level as new support.

Notice how the price action of late has started to ‘cluster’ near trend line resistance at 0.9810. It’s one of my favorite ways to identify a pending reversal and suggests that a breakout is imminent.

But again, without a daily close above the level, there’s nothing to confirm the break. And the market has a twisted way of teaching lessons to those who enter prematurely. As they say, good things come to those who wait.

Get Free Forex Trade Setups Delivered To Your Inbox! Click Here To Get Alerts

USDCHF daily chart showing long-term trend line

Leave a Comment:

Albert says

Hello Justin,
May I know what’s your fee currently?

Imran says

Last Day D1 candle above 9810..Is it fake brake out?

    Justin Bennett says

    We won’t know that until the session closes.

irvin says

hi Justin,
did you buy the USDCHF?

osahon says

great teacher ,just resently started and i want to be applying it.and also be contributing.thanks for doing a great job in the world of forex.
pls will it be good to enter buy at 113,48 on usdjpy.and when should i exit.

Dieter Piesch says

Hi Justin, thanks for the USDCHF Chart. My chart shows, that we are trading at 99.30 right now and the close yesterday was 98.89.

Do I have wrong numbers?

Thanks, Dieter

Add Your Reply