USDCHF kicks off the week with fresh supply.
“Strong sell off kick starts the week for greenback as sentiment is geared towards other assets in the market.”
US dollar opened the week with strong supply, touching multi months low as market mood remains geared towards risky assets. While last week’s Nonfarm Payrolls report came in better than expected, it has failed to boost the currency as Services PMI that was released later in the day shows sharp contraction. For the time being, investors will pay attention to further signals from Fed officials to gauge rate hike sentiment and economic outlook.
Quick recap on USDCHF
While the pair regain some support after closing below prior’s double top neckline.
USDCHF Weekly Technical Analysis
From MACD, diminished downward momentum may suggest an ongoing struggle in between bulls and bears which may delay further extension towards the downside.
USDCHF Daily Technical Analysis
While daily perspective shows promising outlook for the bears, a close below the nearest support is required to attain confirmation.
Trading Idea
ORDER: SELL STOP
ENTRY: 0.9190
STOP LOSS: 0.9280
Target 1: 0.9100
Target 2: 0.9010
ZFX Analyst’s Comment
All in all, the pair manifests further downside possibility from daily perspective which would require confirmatory close below its nearest support level. Thus, a stop level below previous low would be valid for current condition of the pair.
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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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