USD/CHF – 0.9923
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite yesterday’s brief fall to 0.9891, lack of follow through selling on break of previous support at 0.9893 and the subsequent rebound has retained our view that further consolidation is in store and test of 0.9966-69 resistance cannot be ruled out, however, a break of 0.9981 is needed to signal low is formed, bring a stronger rebound to 1.0000-08 resistance, above there would confirm a temporary low has been formed at 0.9891, bring retracement of recent decline to 1.0020-30 (61.8% Fibonacci retracement of 1.0108-0.9891) but price should falter well below resistance at 1.0067.
On the downside, below 0.9905-10 would bring retest of 0.9891 but break there is needed to confirm recent decline from 1.0108 top has resumed and extend weakness to 0.9865-70 (2 times extension of 1.0108-1.0008 measuring from 1.0067), however, support at 0.9831 would hold from here, bring rebound later. As near term outlook is still mixed, would be prudent to stand aside for now.
