USDCHF: Maintains Recovery Tone But With Caution.
USDCHF: While USDCHF may have closed higher for a second week in a row, it ended the week with a rejection candle on the daily chart suggesting price exhaustion has set in. Except it recaptures the 0.8898 level, it faces the risk of a corrective weakness in the new week. In such a case, support lies at the 0.8786 level where a break will set the stage for a run at the 0.8698 level. If it violates this level it will resume its medium term downtrend presently on hold. Further down, support comes in at the 0.8650 level and then the 0.8600 level. On the other hand, the pair will have to break and hold above the 0.8786 level to create scope for additional strength towards the 0.8829 level where a break will pave the way for a run at the 0.8900 level. Above here if seen will aim at the 0.8950 level and subsequently the 0.9000 level. All in all, the pair remains biased to the downside in the medium term though recovering.
Article by www.fxtechstrategy.com
