USD/CHF – 0.9661
Original strategy :
Sold at 0.9680, Target: 0.9580, Stop: 0.9715
Position : – Short at 0.9680
Target : – 0.9580
Stop : – 0.9715
New strategy :
Hold short entered at 0.9680, Target: 0.9580, Stop: 0.9705
Position : – Short at 0.9680
Target : – 0.9580
Stop : – 0.9705
Although the greenback has jumped again in NY morning and rose briefly above 0.9700 level, loss of upward momentum should prevent sharp move beyond there and consolidation with mild downside bias remains for test of support at 0.9618 but break there is needed to signal an intra-day top is formed, bring weakness to 0.8584 support, break there would provide confirmation, bring subsequent fall towards the lower Kumo (now at 0.9552).
In view of this, we are inclined to turn short on further subsequent rise. Above said resistance at 0.9705 would extend gain to 0.9725-30 but still reckon upside would be limited and 0.9761-66 (50% Fibonacci retracement of 1.0100-0.9421 and previous resistance) should hold, risk remains for another retreat to take place soon.
