FOREX Technical Analysis: USD/CHF Outside Day Raises Reversal Possibility

Daily Bars

FOREX_Technical_Analysis_USDCHF_Outside_Day_Raises_Reversal_Possibility_body_usdchf.png, FOREX Technical Analysis: USD/CHF Outside Day Raises Reversal Possibility
FOREX_Technical_Analysis_USDCHF_Outside_Day_Raises_Reversal_Possibility_body_usdchf.png, FOREX Technical Analysis: USD/CHF Outside Day Raises Reversal Possibility

Chart Prepared by Jamie Saettele, CMT

FOREXAnalysis: From yesterday – “The USDCHF is at the final defined level (10/5 and 10/31 lows) before the October low. In other words, if price doesn’t hold here, then there is nothing to stop a test of the October low. Not surprisingly, near term pattern is suggestive a few more legs lower in stair step fashion (small 4th and 5th waves) before we see potential for a material bounce. Strength above 9337 would create overlap and suggest that a low is in place.” The outside day and impulsive rally from 9253 warrants at least a near term bullish bias.

FOREXTrading Strategy: 9283 is support for bullish entries against Tuesday’s low. 9337/57 is interim resistance with a stronger reaction likely near 9400 (between the 50% and 6.8% retracements and former congestion).

LEVELS: 9213 9249 9283 9350 9412 9473

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