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Forex pairs in this Article » USD/CHF
Talking Points

  • USD/JPY holding under key resistance
  • USD/CAD consolidates gains
  • USD/CHF enters important short-term turn window
Unfamiliar with Gann Square Root Relationships? Learn more about them here.

Foreign Exchange Price & Time at a Glance:

Price & Time Analysis: USD/JPY

Price_Time_USDCHF_Low_body_Picture_3.png, Price & Time: USD/CHF Low?Charts Created using Marketscope – Prepared by Kristian Kerr

  • USD/JPY remains in consolidation mode below the 2nd square root relationship of the year-to-date low at 102.75
  • Our near-term trend bias is higher in USD/JPY while above 101.35
  • A clear move through 102.75 is needed to trigger a more important advance in the exchange rate
  • An cycle turn window of some importance is seen over the next day or so
  • A daily close below the 4th square root relationship of the year’s high at 101.35 would turn us negative
USD/JPY Strategy: Square for the moment. Need to see the rate settle over 102.75 before committing to long positions.

Instrument

Support 2

Support 1

Spot

Resistance 1

Resistance 2

USD/JPY

*101.35

102.00

102.30

*102.75

103.15

Price & Time Analysis: USD/CAD

Price_Time_USDCHF_Low_body_Picture_2.png, Price & Time: USD/CHF Low?Charts Created using Marketscope – Prepared by Kristian Kerr

  • USD/CAD reversed sharply higher last week from the 1.0905 3rd square root relationship of year’s high
  • Our near-term trend bias is positive in Funds while above 1.0905
  • The rate has so far encountered resistance at the 88.6% retracement of the Jan/Feb range at 1.1185 and a move through this level is needed signal a resumption of the broader move higher
  • A very minor cycle turn is seen on Thursday
  • Weakness below 1.0905 would turn us negative on Funds
USD/CAD Strategy: Like the long side while over 1.0905.

Instrument

Support 2

Support 1

Spot

Resistance 1

Resistance 2

USD/CAD

*1.0905

1.1000

1.1085

1.1120

*1.1185

Focus Chart of the Day: USD/CHF

Price_Time_USDCHF_Low_body_Picture_1.png, Price & Time: USD/CHF Low?As we made mention on Monday, the next 24-36 hours or so look important for the Euro from a short-term cyclical perspective. This logic extends to USD/CHF as well as the exchange rate has some interesting Fibonacci time relationships of its own converging over the next day or so. A reversal of some kind looks possible during this time especially if the rate can continue to hold above key support near .8850 (2013 closing low). A settle over .8900 would be further evidence of at least a near-term bottom.



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