USDCHF Retesting 50% Fib Retrace of April-June Slide
The USDCHF is consolidating after yesterday’s rebound from uptrend/triangle support (on the daily chart). Significantly, the USDCHF is retesting the 50% Fib retrace of the April to June slide, and is trying to extend the weekly chart upchannel. Odds are fairly high for the USDCHF to close this week above the downtrend resistance line (on the weekly chart) connecting the April and August highs after flirting with breaking above it with this past and the current weekly candles. Further upward momentum can be expected on any daily close above the July and August highs, triggered potentially as early as today following the 830am EST release of US retail sales data. The weekly, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains. I am looking to enter long in the green zone (of the daily chart), targeting the red zone for Wednesday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).