Well done to those who held shorts from 1.0000!
USD/CHF:
For those who’ve been following our morning briefings this week you may recall the research team expressed interest in 1.0000 as a potential sell zone.
Although a key figure by and of itself, it is worth noting 1.0000 was surrounded by a 38.2% H4 Fibonacci resistance value at 0.9993, along with a 50.0% H4 resistance value at 0.9999. What also really attracted us to 1.0000 was the fact daily resistance was in play at 0.9986. The level, as you can see (yellow), boasts incredibly strong historical significance, and, therefore, had a strong chance of holding ground.
As you can see from the H4 chart this morning, the candles made a run for its 0.99 handle Thursday, which was reported as a logical downside target from 1.0000 due to the lack of active demand. Well done to any of our readers who managed to hold their short positions here.
Although 0.99 is seen holding firm, further downside is a possibility. Daily price shows room to continue pressing lower until reaching a support area coming in at 0.9866-0.9830, while weekly price portends a move beyond this area towards the 2018 yearly opening level at 0.9744.
Areas of consideration:
With the higher timeframes signifying further selling, a break of 0.99 is something to keep an eyeball on going forward. In the event the market observes a decisive H4 close under 0.99 that’s followed up with a retest this, according to the overall technical picture, is likely sufficient enough to justify a sell (stop-loss orders can be positioned above the rejecting candle), targeting the top edge of the daily support area mentioned above at 0.9866 as an initial take-profit zone.
Today’s data points: US Non-Farm Employment Change, Average Hourly Earnings m/m and Unemployment Rate; US Prelim UoM Consumer Sentiment; FOMC Member Brainard Speaks.
For those who’ve been following our morning briefings this week you may recall the research team expressed interest in 1.0000 as a potential sell zone.
Although a key figure by and of itself, it is worth noting 1.0000 was surrounded by a 38.2% H4 Fibonacci resistance value at 0.9993, along with a 50.0% H4 resistance value at 0.9999. What also really attracted us to 1.0000 was the fact daily resistance was in play at 0.9986. The level, as you can see (yellow), boasts incredibly strong historical significance, and, therefore, had a strong chance of holding ground.
As you can see from the H4 chart this morning, the candles made a run for its 0.99 handle Thursday, which was reported as a logical downside target from 1.0000 due to the lack of active demand. Well done to any of our readers who managed to hold their short positions here.
Although 0.99 is seen holding firm, further downside is a possibility. Daily price shows room to continue pressing lower until reaching a support area coming in at 0.9866-0.9830, while weekly price portends a move beyond this area towards the 2018 yearly opening level at 0.9744.
Areas of consideration:
With the higher timeframes signifying further selling, a break of 0.99 is something to keep an eyeball on going forward. In the event the market observes a decisive H4 close under 0.99 that’s followed up with a retest this, according to the overall technical picture, is likely sufficient enough to justify a sell (stop-loss orders can be positioned above the rejecting candle), targeting the top edge of the daily support area mentioned above at 0.9866 as an initial take-profit zone.
Today’s data points: US Non-Farm Employment Change, Average Hourly Earnings m/m and Unemployment Rate; US Prelim UoM Consumer Sentiment; FOMC Member Brainard Speaks.
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