Well done to those who sold 1.0000 - incredible risk/reward!
USD/CHF:
Supported by a 161.8% H4 Fibonacci ext. point at 0.9995, H4 supply marked with a red arrow at 1.0007-0.9988, daily resistance plotted at 0.9986 and the RSI indicator running a divergence play, the market observed a strong selloff take shape from 1.0000 (parity) Wednesday on the back of comments from Fed Chair Powell regarding interest rates.
For those who read Wednesday’s briefing you will recall 1.0000 was a noted sell zone. Well done to any of our readers who managed to take advantage of the recent move lower. H4 price, as you can see, overthrew support at 0.9949 (now acting resistance) at the closing stages of yesterday’s trade and is now eyeing a possible test of the 0.9908 Nov 20 low, shadowed closely by 0.99. Higher-timeframe structure, on the other hand, displays room to press beyond 0.99, targeting a daily support area at 0.9866-0.9830.
Areas of consideration:
Aside from the selloff out of 1.0000, additional shorting opportunities may be in store today. A retest of 0.9949 as resistance (black arrows) by way of a bearish candlestick formation (entry/stop parameters can be defined according to this configuration) would, according to the overall picture, likely be enough evidence to consider a sell, targeting 0.99ish as an initial take-profit zone.
Today’s data points: US Core PCE Price Index m/m; US Personal Spending m/m; FOMC Meeting Minutes.
Supported by a 161.8% H4 Fibonacci ext. point at 0.9995, H4 supply marked with a red arrow at 1.0007-0.9988, daily resistance plotted at 0.9986 and the RSI indicator running a divergence play, the market observed a strong selloff take shape from 1.0000 (parity) Wednesday on the back of comments from Fed Chair Powell regarding interest rates.
For those who read Wednesday’s briefing you will recall 1.0000 was a noted sell zone. Well done to any of our readers who managed to take advantage of the recent move lower. H4 price, as you can see, overthrew support at 0.9949 (now acting resistance) at the closing stages of yesterday’s trade and is now eyeing a possible test of the 0.9908 Nov 20 low, shadowed closely by 0.99. Higher-timeframe structure, on the other hand, displays room to press beyond 0.99, targeting a daily support area at 0.9866-0.9830.
Areas of consideration:
Aside from the selloff out of 1.0000, additional shorting opportunities may be in store today. A retest of 0.9949 as resistance (black arrows) by way of a bearish candlestick formation (entry/stop parameters can be defined according to this configuration) would, according to the overall picture, likely be enough evidence to consider a sell, targeting 0.99ish as an initial take-profit zone.
Today’s data points: US Core PCE Price Index m/m; US Personal Spending m/m; FOMC Meeting Minutes.
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Feragatname
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