USD/CHF Breaks To The Upside On Speculation That The SNB Would Continue To Prevent Appreciation Of The Swiss Franc

The USDCHF moved higher in the London morning session as speculation that the central bank will continue to prevent appreciation. There were some comments form SNB’s Jordan who said the central bank intervention has been successful in halting the currencies rise.  The comments helped push the pair through the trendline resistance at the 1.0267 level which has held the topside on the daily chart since August.  That trendline was tested yesterday and held. Today the break, led to to a sharp move higher.

Now that the trendline has been broken the target on the upside looks toward the 1.0410 level. This is the 38.2% retracement level of the move down from the summer high of 1.1022 (the last corrective high for the pair).  Before that, however, look for some resistance at the 1.0352-58 level where there are a few highs from October which halted moves higher at that time. Today, the high has reached 1.0337.

On the downside, look for support down at the 1.0278 level which was the high from yesterday and then at the trendline at the 1.0267. The market should not trade below these levels today. If they do, there is something amiss with the break.

Subscribe by RSS Subscribe by Email