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Screenshot of a breaking news alert e-mail from Q2 2017
Friday’s sharp fall through the 100 day moving average deepened on Monday. This latest decline — the third in a row — took USDCHF to test the 13 and 200 day moving average area.
The scope of the three day move also took signals for sentiment to oversold extremes. That element coupled with positive divergence in some technical signals introduces a strong note of caution to today’s analysis, but Asian losses have emphasised an underlying negative tone.
Management and risk description
A move below 0.9930 means the stop can be lowered to break even.
Entry: Sell in 0.9950/55 area and at 0.9973.
Stop: 0.9995 bid.
Target: 0.9930, 0.9913 and 0.9897.
Time horizon: Intraday, ending 1500 GMT.
Setback from high
USDCHF hits oversold levels