USD/CHF – 0.9525
Original strategy :
Buy at 0.9500, Target: 0.9600, Stop: 0.9465
Position : –
Target :Â –
Stop : –
New strategy :
Buy at 0.9465, Target: 0.9590, Stop: 0.9430
Position : –
Target :Â –
Stop : –
As the greenback has continued trading within familiar range, further sideways trading is in store and although initial downside risk remains for weakness to 0.9500, if our view that low has been formed at 0.9428 last week is correct, downside would be limited to 0.9460-65 and bring another rebound later. Above 0.9595-00 would suggest low is possibly formed, bring test of 0.9653-55 resistance, break there would bring another rise to 0.9680 but break there is needed to add credence to this view and extend gain to resistance at 0.9698-99.Â
In view of this, we are inclined to buy dollar on further subsequent decline. Below 0.9450 would risk weakness towards said support at 0.9428 but break there is needed to signal recent decline has resumed and extend further fall to 0.9390-00 first.
