Preferred Strategy: US$Chf had a tough session in falling hard, in line with the move in the Euro, and finishing near the day’s low of 0.9881.
The 4 hour/daily momentum indicators are warning of further losses ahead, which if correct would target 0.9865/70, and below there could see a run towards 0.9835 and 0.9800.
The topside currently looks a little limited, but a good US CPI could see a run back towards 0.9940 and to the session high of 0.9970, and then possibly back towards parity although the momentum indicators don’t really suggest such a move.
Further out, given the positive look of the weeklies, if we can eventually take out 1.0015/25 we could then head on to take another look at 1.0035/40, above which there is little to hold the dollar up ahead of 1.0100, and beyond that to 1.1025 and 1.0170.
|24 Hour: Mildly Bearish||Medium Term: Prefer to buy dips|
|FX Charts Position:||Long – SL @ 0.9840.|
|1.0017||9 Nov high||0.9881||Session low|
|0.9986||13 Nov high||0.9868||25 Oct low|
|0.9940||Minor||0.9830/35||23 Oct low/100 WMA|
|0.9925||Minor||0.9800||(38.2% of 0.9420/1.0037)|
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