USD/CHF – 0.9930
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 : –
Yesterday’s selloff after meeting renewed selling interest at 1.0003 adds credence to our view that recent decline from 1.0171 is still in progress and may extend weakness to 0.9900 (61.8% projection of 1.0109-0.9942 measuring from 1.0003), however, loss of downward momentum should prevent sharp fall below 0.9870-75 and reckon 0.9850 would hold from here, risk from there has increased for a rebound later.
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.
