USD/CHF: More downside ahead
Updated
Here's an overview of the USD/CHF pair.
We shorted the pair in the lower 0.96xx levels, locked in part of the profits at today's lows, and continue to hold the remaining position.
TECHNICALS:
USD/CHF broke below a triangle pattern and completed a pullback to a horizontal resistance level, where sellers joined the market this morning. The triangle pattern projects a profit target of around 250 pips to the downside. The 1-hour chart shows the traded resistance in more detail.
FLOWS:
Positioning in the US dollar remains subdued, while the CHF continues to be in good demand. According to our model, the CHF has a bullish score of 8/10, compared to a bearish 2/10 score for the USD.
MARKET NARRATIVE:
The US dollar will likely continue to be sold in the coming days and ahead of the FOMC meeting.
We shorted the pair in the lower 0.96xx levels, locked in part of the profits at today's lows, and continue to hold the remaining position.
TECHNICALS:
USD/CHF broke below a triangle pattern and completed a pullback to a horizontal resistance level, where sellers joined the market this morning. The triangle pattern projects a profit target of around 250 pips to the downside. The 1-hour chart shows the traded resistance in more detail.
FLOWS:
Positioning in the US dollar remains subdued, while the CHF continues to be in good demand. According to our model, the CHF has a bullish score of 8/10, compared to a bearish 2/10 score for the USD.
MARKET NARRATIVE:
The US dollar will likely continue to be sold in the coming days and ahead of the FOMC meeting.
Trade closed manually
Trade closed 170+ pips in profit.
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