USD CHF Backs Down After Hitting Fib Retracment Level

Traders are pressuring the USD CHF ahead of this morning’s U.S. Third Quarter GDP Report.  Expectations are for a growth rate of 3.2% as consumers and the government helped spend the economy out of the recession.

Traders are pressuring the USD CHF ahead of this morning’s U.S. Third Quarter GDP Report.  Expectations are for a growth rate of 3.2% as consumers and the government helped spend the economy out of the recession.

Yesterday the USD CHF main trend turned up on the daily chart, but is finding resistance overnight after a .618 retracement point was tested at 1.0292.  This price is based on the range of 1.0032 to 1.0452. 

Another sign of developing weakness is the fact that this currency pair has broken back under downtrending Gann angle resistance at 1.0252. 

Given the developing short-term range of 1.0032 to 1.0285, don’t be surprised if this pair pulls back to 1.0159 to 1.0129.  The strength and direction of the trend today will be based on how far above or below the actual report comes out compared to the pre-report estimate of up 3.2%.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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