Trade view /
05 March 2018 at 8:30 GMT
EUR/CHF found support close to 1.1500 against the franc on Friday and strengthened to the 1.1550 area late in the session. USD/CHF also recovered from weakest levels with a close around 0.9370.
The franc lost some ground late as US and European bond yields retreated and US equity prices recovered ground. Uncertainty surrounding the Italian political situation, however, triggered renewed defensive franc demand on Monday with EUR/CHF near 1.1520 as global equities also retreated.
The medium-term bias remains bullish.
A bullish reverse Head and Shoulders is forming.
The gap open from 0.9372 to 0.9347 has now been closed.
We continue to expect further gains to be limited and look to set shorts for a further drive lower within the channel.
Further selling is expected to follow with the hourly Ichimoku cloud and our bespoke resistance (0.9391) offering incentive.
Although the anticipated move lower is corrective, it does offer ample risk/reward today.
USDCHF Intraday Chart
Management and risk description
If stop or target levels are not reached, traded price at 21:00hrs (UK time) or in the case of Asian/Pacific ideas 16:00 hrs (UK time) the following day, will be used as a closing level for performance analysis.
Intraday - We look to sell at 0.9391
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more
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