USDCHF: To test double top, playing a pullback
SNB Chairman Jordan reiterated his concerns over the significantly overvalued franc and his willingness to intervene to drive down its value. He added that the central bank will also rely on negative interest rates as a tool to keep the franc at a reasonable level. Franc was little changed against the euro after Jordan’s speech, and is now trading at 0.9910 levels against the US dollar.
While .9860 continues to support downside reactions expect a breach of 1.00 to test offer and stops above the figure. As offers on the initial test of the double top reject on the first test expect a retest of bids at .9860/80 before potential trend continuation
- I will be watching USDCHF today. I am looking to play this pair from the short side, watching for intraday reversal patterns at the double top test which coincides with an AB = CD equality legs from year to date lows as per the chart below.
- I am anticipating a pullback from the double test as an opportunity to align with the broader trend, will update this trade if it develops
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