John J Hardy
Surprise ISM non-manufacturing data set Friday’s US employment report up to be more interesting than usual, says Saxo Bank’s head of FX strategy John Hardy.
Day trade
Trade view / 09 June 2016 at 6:11 GMT

USDCHF ripe for corrective rallies, but they'll be limited

Partner at 3 C ANALYSIS / 3cAnalysis
United Kingdom

Despite oversold concerns, yesterday's bearish call was proved correct. Selling pressure was steady and the resulting fourth consecutive day of declines kept USDCHF tight to the lower end of a falling Keltner channel.

New four-week lows and little in the way of intraday rallies keeps sentiment oversold and ripe for corrective rallies. But currently there is no sign that such bounces will be anything other than limited and so our focus remains on the downside.

Management and risk description

A move to 0.9568 means the stop can be lowered to break even or better.


Entry: Sell in 0.9590/95 area and any rally to 0.9616

Stop: 0.9644 bid.

Target: 0.9568, 0.9538 or even towards 0.9500.

Time horizon: Intraday, ending London 1600 (1500 GMT) on Thursday June 9

Four down days
4 Down Days
 USDCHF looks oversold
Long-term trend
Long Term
All charts from CQG. Create your own charts with SaxoTrader; click here to learn more.

For more on forex, click here.

— Edited by Robert Ryan

Non-independent investment research disclaimer applies. Read more
09 June
Raj-900 Raj-900
Hi Alan,
Is this trade still in favor or not to enter this trade for the day?
09 June
AlanCollins AlanCollins
obviously negative signals have been diluted but CHF is still strong overall and stop in right place so sticking with negative view although with added caution.
09 June
Raj-900 Raj-900


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