USDCHF: Prefer to buy the dips
|USDCHF: 0.9618
US$Chf had a tight range (0.9600/38) on Friday, leaving the outlook unchanged – Neutral but prefer to buy dips
1 hour/4 hour indicators: Neutral
Daily Indicators: Turning Neutral
Weekly Indicators: Neutral
Preferred Strategy: The short term momentum indicators look fairly neutral at the start of the week, requiring a cautious outlook, although while we trade above the rising trend support, I still prefer to buy the dips.
If the dollar falls back below 0.9600, the initial support will arrive at 0.9585 ahead of the rising trendline at 0.9550, which should remain intact today – unless the US Retail Sales fail badly and produce a decent dollar sell-off.
The longer term momentum indicators still look pretty much neutral, but if we do see a turn higher, then above 0.9635/40 we will then run into the strong resistance at the 200 DMA (0.96550 and then at the 200 WMA (0.9680) and I doubt that we see this tested today, but think it will happen eventually.
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