The USDCHF continued its bearish correction yesterday and now seems ready to test 0.8550 key support area. However my major outlook remains to the upside and there is no reason for me to change that as the current bearish pullback is still normal after huge bullish move triggered by SNB intervention. Immediate resistance is seen around 0.8770. A clear break back above that area could stop the current bearish short term bias but would need at least a movement back above 0.8850 area to potentially end the current bearish correction phase retesting 0.8945. I will stand aside for now, but for me 0.8550 area seems to be good place for a long position due to a good risk – reward ratio there.
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