USD Index Weekly: Wednesdays outside day is still holding but the long-term trend of lower lows from Q3 2015 to Q2 2016 is being pressured once more.
When we have large news events like this we find that is ‘less reliant’ and large swings can be seen in either direction. With this in mind, we like to look for higher probability trade set ups that offer solid risk/reward ratios. I believe that USDCHF holds one today. I am only looking at one timeframe, daily.
Daily: We have a area at 0.9550. This is the 161.8% extension from 1.0039 to 0.9735 and the 78.6% pullback from 0.9420 to 1.0039. This has formed a pattern. It should also be noted that is at a 12 count on the one-hour chart. A 13 count highlights exhaustion. The first resistance is located at 0.9735