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USD/CHF Headed Higher?

January 30, 2014

Kristian Kerr

Talking Points Reverses from key technical level Cyclical outlook turning more positive in the days ahead USD/CHF has moved steadily higher since finding support last week just ahead of the 1st square root relationship of the 2013 low at .8890. With the near-term cyclical picture turning more positive over the next few days and the exchange rate overcoming key Fibonacci and psychological resistance at .9000 we like the risk to reward of getting the long the pair. We cannot rule out some sideways price action before the rate heads higher in earnest so we like buying on any moderate weakness back towards the 2nd square root relationship of the 2013 low at .8985. A daily close below last week's closing low at .8835 would undermine the immediate upside potential and turn us negative on the exchange rate. USD/CHF Daily Chart: January 30, 2014 Key Event Risks in Coming Sessions: LEVELS TO WATCH Resistance: .9045 (Gann), .9080 (Gann) Support: .8985 (Gann), .8935 (Last week's closing low) Strategy: Buy USD/CHF on weakness Entry: Buy USD/CHF at .9005 Stop: 1-day close below .8935 Target: .9145

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Source: DailyFx

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