The Swiss National Bank has maintained their intentions to prevent the Swiss Franc’s appreciation in order to spur export demand. This has led to the pair consolidating for extended periods as traders remain leery of intervention. However, the threat of artificial price action does present a looming risk, forcing traders to remain alert.
[B]Key Technical Levels[/B]
Recently the USDCHF has experience some volatility which has pushed to fresh yearly lows. The currency appreciation will garner attention from the SNB which increases the risks of intervention. However, that same threat may foster a period of consolidation that could provide an opportunity for scalpers to execute their strategies. We have seen over the past year that the pair has a tendency to settle into long periods of range bound price action which may be the case currently.
[B]Quantitative Metrics [/B]
A declining ATR and narrowing Bollinger band adds to the USDCHF’s attractiveness and validates the measured pace the pair has maintained. An implied volatility of 9.79, which is the second lowest of the pairs listed below, is another argument for targeting it for scalping techniques. However, the Bollinger band width is approaching level that typically trigger a breakout and traders should keep that in mind.
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