Trade view /
22 August 2016 at 7:15 GMT
USD Index – Just hitting the intraday 261.78% extension level of 94.91 (from 954.05-94.38) and possibly forming a double top pattern. There's no clear indication that the bias is changing as yet but it would be unwise to buy USDs at the open.
Source: Saxo Bank
We look for the upside to be limited in USDCHF and here is why:
Weekly Chart – Highlights the pair in a bearish channel formation. There is no clear indication that this corrective sequence is coming to an end. Posted a bearish Outside Week on the July 25 with subsequent rallies being capped by the Marabuzo level of 0.9798.
Daily Chart – Highlights very mixed trading. We did break the trend of higher lows on Thursday but levels under 0.9610 have attracted some profit taking.
Six hours – The last two drives lower have been impulsive. This would suggest that any moves to the upside are profit taking corrections. The reverse trendline resistance is at 0.9689. Our bespoke resistance is located at 0.9689. We cannot rule out a move to this resistance. However, with a solid barrier also at 0.9672, we would prefer to fade the move. The prime target is at 161.8% extension at 0.9442.
Management and risk description
We would look to move a stop to entry on a move to 0.9600
Selling 1 unit at 0.9672 and 0.9688
40 pips combined (0.9720)
today to trigger 2-3 session for the target
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more