USD/CHF: Tracking Correction After Pop
- 1H and 15min: The earlier post on USD/CHF anticipated a small correction because there is such momentum on the pop. However, since then, the market managed to retrace 50% of the pop as can be seen in the 15min time-frame, at 1.5780. In the 1H time-frame the 50% retracemen of a larger swing is also in this area at 1.5740.
- This may provide support for a continuation swing, but as always if the correction is not merely a 26.3 or 38.2% type, I look for 2-swings.
- The market should not go below 1.5560 if it is in a bullish attempt. Otherwise, we are still in a sidways topping action in the higher time-frames, and this makes sense since the daily and weekly are both overbought according to the RSI.
- Hopefully the market will bottom, because a sharp continuation can leave us behind and only aggressive traders will be able to catch those (although aggressive traders will also more likely get whipsawed.
- The target as mentioned in the earlier post is 1.19.
- (UPDATE): As I am posting this, the market is testing 61.8% 1.5560.
Fan Yang Currency Analyst Commodity Trading Advisor