Forex Sell Setup For August 25, 2016

USDCHF Daily Forex Analysis

This post is all about today’s analysis of USDCHF. The USDCHF Forex Trading Analysis will help the traders to get the ideas for trading this pair.

USDCHF Short Corrective Structure

USDCHF Breaking corrective structure looking like its going to make another impulse wave down. Also hitting .618 retracement from recent high to low. Also Ichimoku TK cross over on the 1hr plus 50 regression and 50 EMA moving averages fanned. Also daily stochastic in sync with 4hr MacD and divergence looking good! Plus already had a multi session double top should trend down rest of the week. The pair is retreating for the second consecutive day amidst growing selling pressure around the greenback, as market participants seem to have already digested last Friday’s Payrolls figures. The offered tone around USD has accelerated after another failed attempt to surpass the 0.9850 area, triggering the ongoing leg lower and retracing further last week’s strong advance.

USDCHF Forex Trading Analysis 1

USDCHF Forex Trading Analysis

USDCHF continues to bounce from hourly support given at 0.9634 (02/08/2016 low) while strong resistance is given at 9956 (30/05/2016 high). Volatility is very low and should indicate that this short-term bullish momentum is at stake. In the long-term, the pair is still trading in range since 2011 despite some turmoil when the SNB unpegged the CHF. Key support can be found 0.8986 (30/01/2015 low).

USDCHF Forex Trading Analysis

USDCHF Short On 4Hr

Extending its bullish momentum for fifth consecutive day, the USDCHF pair has now risen to 8-day high level to currently trade within striking distance of the very important 200-day SMA region around 0.9840 region. Last week the pair reversed sharply after dropping to a multi-week low level. The recovery momentum got an additional boost from last week’s stronger-than-expected headline NFP print for July. Friday’s stellar jobs report has revived hopes of Fed rate-hike action, sooner rather than later. Meanwhile, the Swiss France came under fresh selling pressure after CPI data released on Monday showed deflationary pressure making a comeback, which might now fuel speculations of SNB action in the near-future.

USDCHF Forex Trading Analysis 3

From current levels, 200-day SMA near 0.9857-60 region remains immediate hurdle, which if cleared decisively seems to lift the pair immediately towards 0.9900 handle before the pair extends its bullish momentum further towards July swing high resistance near 0.9950 region.