Taking a look at the D heat map for today, we can see that Euro is trading broadly lower. A surprise is that Swiss Franc is even weaker despite risk aversion. That prompts us to have a look at USD/CHF to see if there is some underlying weakness in the Franc.
From USD/CHF action bias table, we can see that the pair is maintaining solid upside W action bias. D action bias stayed neutral for more than nine bars, arguing that it’s in a shallow consolidation pattern. This consistent with the “look” in D action bias chart.
6H action bias chart showed that there were downside attempts but failed. But there is no clear sign of rally yet. Now, with H action bias turned upside blue for in the last four bars there is “prospect” of rally resumption. USD/CHF is worth a watch now. There will be more confidence on a bullish view if 6H action bias turns upside blue too.
Taking a look at the regular OHLC chart, it’s early to tell if the pull back from 1.0056 has completed. But when that’s confirmed, there is potential to extend recent rise fro 0.9186 to 1.0342 key resistance. So, a way to trade this is, buy on a break of 0.9980 (slightly above 0.9977 minor resistance). Stop would be put at 0.9880, below today’s low. Target will be 1.0342. Ideally, we should see 6H action bias turns blue too on next rise.
