USD/CHF – 0.9613
Original strategy :
Sold at 0.9625, Target: 0.9525, Stop: 0.9660
Position : – Short at 0.9625
Target : – 0.9525
Stop : – 0.9660
New strategy :
Hold short entered at 0.9625, Target: 0.9525, Stop: 0.9650
Position : – Short at 0.9625
Target : – 0.9525
Stop : – 0.9650
Although the greenback rebounded again in European morning, as price has retreated again after meeting resistance at 0.9649, retaining our bearishness and as long as this level holds, mild downside bias remains for another fall towards 0.9563-65 (50% Fibonacci retracement of 0.9421-0.9705 and Friday’s low), break there would add credence to our view that top has been formed at 0.9705, bring further weakness to 0.9525-30 (61.8% Fibonacci retracement), however, downside should be limited to 0.9500 and 0.9480-85 should hold from here.
In view of this, we are holding on to our short position entered at 0.9625. Above 0.9649 would defer and risk rebound to 0.9675-80, break there would signal the pullback from 0.9705 has ended, bring retest of this level, a breach of this last week’s high would extend recent rise from 0.9421 to 0.9740-50 later.
