USDCHF to rise further
3rd August 2015
Last week saw USDCHF bought to higher levels for a 6th week in a row. Gains were not extensive and price action was distorted by volatility in the CHF as a whole. But Friday’s downside rejection maintained the market above the 13 day moving average (broadly unbroken throughout July) and the daily Keltner channel continues to trend positively. Although gains in this currency pair are currently driven by a weak CHF there is no sign of that scenario yet being exhausted.
Therefore, with a good degree of caution, our call is modestly Bullish around the .9650 area but leaving room to Buy a Dip to .9598. The risk is .9521, the 2 week low, with an immediate target of .9722, last week’s top. A move through that point then exposes sentiment to .9792 and .9865, the open and high from 16 weeks ago.
