June Swiss Franc futures (S6M26) present a selling opportunity amid further price weakness.
The daily bar chart of June Swiss Franc futures shows that prices are trending lower and recently hit a two-month low. Also see at the bottom of the chart that the Moving Average Convergence Divergence (MACD) indicator is in a bearish stance as the blue MACD line is below the red trigger line and both lines are trending down. Swiss bears have the short-term technical advantage.
Crucially, the Swiss franc has experienced economic problems due in part to US tariffs, rising unemployment and deflation. Meanwhile, the US dollar ($DXY) has strengthened due to greenback demand for quality.
A move in June Swissy below chart support at the March low of 1.2684 would become a selling opportunity. The downside price target would be 1.2250 or less. Technical resistance, for which to place a protective buy stop just above, is at 1.2880.
IMPORTANT NOTE: I am not a futures broker and I do not manage any trading accounts other than my personal account. My goal is to point you to potential business opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you can initiate. Any trade I analyze is hypothetical in nature.
Here’s what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before investing money in futures or options contracts, you should consider your financial experience, goals, and financial resources, and know how much you can afford to lose beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations when entering into those contracts. You should understand your risk exposure and other aspects of trading by carefully reviewing the risk disclosure documents your broker is required to provide you.
As of the date of publication, Jim Wyckoff had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com