Consolidation Break on USD/CHF?

Good morning forex friends!  With the September US NFP report finally coming out this week, the focus remains on the US and the Greenback.  Is the small movement in USD/CHF an opportunity for quick momentum?

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Forex USD/CHF 1 hour

Forex USD/CHF 1 hour

I’m only in watch mode right now as we’re in a rare situation with the US NFP coming out on a Tuesday. It’s usually released on a Friday, which tends to have a different participation profile from traders who tend to trade differently as the weekend comes to a close than on a Tuesday. I’d like to see what the September number brings and how the market reacts to it before taking on a possible swing trade.

Right now, I’m bearish on USD because of the “risk-on” sentiment taken on by traders after the end of the partial US government shutdown and US debt default aversion. Looking at the 1 hour chart above, a pull back to .9100 looks like an opportunity to short USD/CHF at a better price if the story stays the same. Or a break of the major psychological support level at .9000 may be an opportunity to take a ride on the USD bear train to support levels not seen since 2011 around .8600.

So, no orders in the books for now, but I’ll be keeping a close eye on the market. Besides USD/CHF, I’m watching similar consolidation patterns on EUR/USD and GBP/USD at the moment. If I do make a move or a new observation, I’ll be sure to put it up on my Twitter and Facebook–so, check’em out to stay tuned!

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