USDCHF: Prefer to buy the dips

USDCHF: 0.9595

US$Chf took a dip back below 0.9600 in reaching 0.9577, but  has so far held on to the rising uptrend line, leaving the cautiously bullish outlook unchanged, as long as it does so.

1 hour/4 hour indicators: Neutral

Daily Indicators: Turning Neutral

Weekly Indicators: Turning higher

Preferred Strategy: The short term momentum indicators look fairly neutral on Tuesday, 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 the 100 DMA, at 0.9585 and the session low of 0.9577, the rising trendline is now at 0.9560, which needs to hold. Under here would negate the mildly bullish stance and could see a run back towards 0.9525/35 and possible back to 0.9500.

The daily momentum indicators still look pretty much neutral, but the weeklies look reasonable constructive, and if we do see a turn higher, then above 0.9635/40 we will then run into the strong resistance at the 200 DMA (0.9655) and then at the 200 WMA (0.9680) and I doubt that we see this tested today, but think it will happen eventually.

Resistance   Support  
0.9680 200 WMA/Weekly cloud base 0.9585 100 DMA
0.9666 18 Jan high 0.9577 13 Apr low
0.9652/48 200 DMA /6 Apr high 0.9555/60 11 Apr low/4 Apr low / Rising trend support
0.9638 13 Apr high/Session high 0.9534 (23.6% of 0.9187/0.9596)/10 Apr low
0.9600 Minor 0.9526 2 Apr low

 

USDCHF

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