Off the Chart: USD/CHF Rally into Possible Swing Short
The USD/CHF is once again on the move higher as has been the near-term price movement since the 0.8921 low hit on March 16. The USD/CHF is rallying on the dollar’s push back above 76.00 and the persistent sovereign debt concerns in Europe.
The USD/CHF still in a downtrend, sets up a swing short from the area between the 20 period SMA and the 34 period EMA low.
*Results are not guaranteed, individual experiences may vary. Past performance is not indicative of future results.
The rally in the USD/CHF is heading into the swing short “zone” between 0.9180 and 0.9220 - both minor psychological levels. This swing short also relies on price action not getting too far away from selling pressure that will be expected around the major 0.9200 psychological price level. The expectation for selling pressure comes from the downtrend that the pair is in on the daily chart confirmed by the “four to six o’clock” angle of the 34EMA Wave and the red GRaB candles.
The EU Summit - now into its second day - seems to been rocked by the problems out of Portugal and with the EUR/USD slide the problem could be less about Portugal and the market moving on to concerns about Spain.
I would recommend looking for attention moving to the EUR/JPY next as prices are hovering just below 115.00. The Japanese Yen has not moved against the dollar in any significant way in nearly five trading sessions.