Warning signs highlight USDCHF correction due
The most important factor today looks like the USD index. We are close to the 261.8% extension level of 95.75 (from 91.88-93.36). Intraday oscillators are starting to show bearish divergence. We do have solid support at 95.19 and could see a corrective bounce from there so there could be mixed trading today (selling rallies at 95.76 or buying dips at 95.18 – current price 95.55).
Looking at the diary, there is no real catalyst today unless a US Federal Reserve speaker reverses the rate-hike rhetoric. I think it would more likely be tomorrow's US Durable Goods release if this USD bull run is going to end, and correct lower (before the next wave higher begins).
Management and risk description
Entry: sell at 0.9955.
Target: 0.9885 and 0.9850.
Time horizon: targets to be met within 5 sessions.
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more