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