Higher lows dictate positive sentiment for USDCHF
The recovery from last week's lows continued, modestly, yesterday. Our call was a neutral one after Wednesday’s gains stalled at the 13-day moving average. For the bulk of the day this was justified and a reaction from that point was seen. But the setback was limited and buying was renewed at higher levels for a renewed test of the important 13-day line. That level did not clearly break but the downside rejection was enough to leave immediate sentiment positive.
Management and risk description
A move to 0.9690 means the stop can be raised to break-even.
Entry: buy in 0.9660/65 area.
Stop: 0.9624 offered.
Target: 0.9690, 0.9708 or even 0.9738.
Time horizon: intraday, ending 1/2 hour ahead of US data.
Testing key average
— Edited by Gayle Bryant