Having rallied strongly to halt its corrective pullbacks started from the 0.9768 level, the risk in the new week is for USDCHF to extend that gain. If this is seen, the 0.9649 level should be targeted where a violation will aim at its May 2012 high at 0.9768 level. A decisive break and hold above here will resume its medium term uptrend initiated from the 0.7068 level. This will pave the way for a move further higher towards the 0.9850 level and possibly extending towards the 0.9944 level, its 200 weekly ema. The alternative scenario will be for the pair to return to the 0.9441 level where a breach will aim at the 0.9366 level. Further down, support lies at the 0.9331 level. On the whole, the pair remains biased to the upside in the medium term despite its corrective pullback risks.
Join the Discussion