USDCHF: Prefer to sell rallies
USDCHF: 0.9731
US$Chf headed to a new 2017 low of 0.9691 on Monday before a bounce, to finish at 0.9740.
The daily momentum indicators are still pointing sharply lower and further downside momentum seems highly likely in the days ahead although the 4 hour charts appear to be recovering after having become oversold, so further short term consolidation may be needed on Tuesday.
If we do head lower, then back below the long-term rising trend line at 0.9705 would then open the way back to the session low and then to 0.9675 and to 0.9600/40, below which could see a return to the 9 Nov low at 0.9550.
On the topside, the initial, minor resistance will arrive at the session high of 0.9765 and then at 0.9785, above which could see a run back to 0.9800/10, which should be strong if we get there today and may present a decent sell opportunity although I doubt that we see it.
| 24 Hour: Prefer to sell rallies | Medium Term: Mildly Bearish | ||
| Resistance | Support | ||
| 0.9845 | (38.2% of 1.0100/0.9691) | 0.9705 | Rising trend support |
| 0.9825 | 15 May high | 0.9691 | Session low |
| 0.9804 | 19 May high | 0.9675 | Minor |
| 0.9785 | (23.6% of 1.0100/0.9691) | 0.9640 | Minor |
| 0.9765 | Session high | 0.9600 | Minor |
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Author
Jim Langlands
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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.
