USDCHF: Prefer to buy the dips

Jim Langlands FX Charts

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.

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

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