USDCHF: 0.9884
Preferred Strategy: US$Chf had a steady grind lower on Friday, and from the look of the 4 hour/daily momentum indicators we could see further losses on Monday although we are running into decent support below Friday’s low.
The 4 hour and daily momentum indicators are still hinting at the chance of further downside momentum, which if correct would head back below 0.9875 to where further support would been at 0.9845 and 0.9800/10.
On the topside, resistance will be seen at the 0.9900 pivot, ahead of Friday’s high at 0.9940, beyond which could see a move back to parity although not today as it looks as though the downside is currently the path of least resistance.
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 – Prefer to sell rallies | Medium Term: Prefer to buy dips | ||
| FX Charts Position: | Long – SL @ 0.9840. | ||
| Resistance | Support | ||
| 1.0037 | 27 Oct high | 0.9879/78 | 16 Nov low / Friday low |
| 1.0017 | 9 Nov high | 0.9845 | 15 Nov low/100 WMA |
| 0.9986 | 13 Nov high | 0.9810 | 200 DMA |
| 0.9940 | 16 Nov high /Friday high | 0.9800 | (38.2% of 0.9420/1.0037) |
| 0.9900 | Pivot | 0.9785 | Minor |
Economic data highlights will include:
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T: Trade Balance
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