USD/CHF – 0.9935
Original strategy :
Sell at 1.0000, Target: 0.9900, Stop: 1.0035
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.0000, Target: 0.9900, Stop: 1.0035
Position : –
Target : –
Stop : –
Dollar’s rebound after falling to 0.9882 yesterday suggests consolidation above this level would be seen and corrective bounce to 0.9945-50 cannot be ruled out, however, reckon upside would be limited to 0.9980 and renewed selling interest should emerge around 1.0003 resistance, bring another decline later. A break of said support at 0.9882 would add credence to our view that recent decline from 1.0171 is still in progress and may extend weakness to 0.9865-70 but loss of downward momentum should prevent sharp fall below 0.9850 and reckon 0.9825-30 would hold.
In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as 1.0000-05 should limit upside and bring another decline. Only above previous support at 1.0060 (now resistance) would abort and signal low is formed instead, risk rebound to 1.0090-95 first.
