USD/CHF – 0.9707
Original strategy :
Sell at 0.9720, Target: 0.9620, Stop: 0.9755
Position : –
Target : –
Stop : –
New strategy :
Sell at 0.9740, Target: 0.9640, Stop: 0.9775
Position : –
Target : –
Stop : –
Although the greenback did stage the anticipated rebound to 0.9808 (our long position entered at 0.9700 met target at 0.9800), dollar ran into heavy selling pressure at 0.9808 earlier this week and has dropped sharply since, the subsequent breach of previous support at 0.9692 confirms recent decline has resumed and may extend further weakness to 0.9655-60, then 0.9630, however, near term oversold condition should prevent sharp fall below 0.9600-05 (50% projection of 1.0100-0.9692 measuring from 0.9808), bring rebound later.
As we already took profit on our long position entered at 0.9700, we are looking to turn short on recovery as 0.9735-40 should limit upside and bring another decline. Only break of resistance at 0.9761 would abort and suggest a temporary low is possibly formed, risk test of said resistance at 0.9808 but only break there would provide confirmation.
