USD/CHF Double Top

In the week before Christmas despite all the prior volatility and uncertainty in markets there is still some good old pattern following movements. Markets are now calmer and contained as we head into 2017. USD/CHF made a high 1.0340 on 15 Dec and since then it's been trading around the 1.0300 level. That level is seen as a second top which comes less than a month after the first top made on 27 Nov.

USD/CHF is now trading at 1.0277 indicating that the resistance zone is acting strongly and preventing bulls from going above 1.0350. If that level holds we might see a move to the downside to a probable first target of 1.0000, or in other words - parity.

On the other hand, given how strong the US economy is right now and how optimistic the outlook is, bulls can very easily take out the resistance and go well above 1.0350.

No matter which one it might be, market participants usually are very quite in the last week of the year so low volatility can be expected.

Chart: USD/CHF D1