ZuluTrade Blog

A potential scenario for USDCHF

Market View | Tuesday, January 8, 2019 2:05 PM GMT

Yesterday, the US ISM Non-Manufacturing PMI dropped to 57.6 in December from 60.7 in November, unrevised from market expectations of 59. On the other side, earlier today, the Swiss Retail Sales (YoY) fell to -0.5% from 1.0% in the previous month.   

Reviewing the weekly chart, USDCHF is moving towards the 61.8% Fibonacci level, which may act as a reversal point.


Heading to the daily timeframe, the pair is currently failing to break out the support (S1) to the downside. A potential breakout below the support (S1) maybe indicates a continuation of the bearish momentum till the support zone between the 61.8% Fibonacci level and the daily (S2). At that point, the Bulls may take control of the pair targeting around 0.987 level.



On the other hand, if price breaks below the trendline (T1), then the scenario is busted.

Today’s agenda includes also US Consumer Credit Change (Previous: $25.38B, Forecast: $18.00B).

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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