USD is in No-Man’s land and had no correlation to the steep declines in the other currencies on Friday. We did not see any big moves in this pair.
I had to take a quick look at the USDCHF considering the fall in the other currencies such as AUD & EUR on Friday. Usually there is inverse correlation between the USD and other currencies. Currently there is none.
Technical analysis suggests we can look at trading this pair two ways. The two blue support and resistance lines are the areas that I will be watching to trade.
My personal bias is long.
The current channel that is forming is 275 pips wide.
The previous channel was 315 pips.
If price breaks and closes above 0.9950 (blue line) your 1st target is 315 from this area = 1.0082 or the 13/12/16 high and the 127% extension of the swing.
If price heads lower from 1.0082 the resistance we can expect a retest of the 0.97815 or even the 0.9655 area where we have overlapping fib levels and the deeper retracement level of 50% before price heads higher.