USD/CHF sidelined below 1.0050 level, traders await clarity on US-China trade talksOur preference: short positions below 1.0035 with targets at 0.9990 & 0.9970 in extension.Alternative scenario: above 1.0035 look for further upside with 1.0060 & 1.0080 as targets.
I wrote yesterday that key levels looked like holding and the price seemed to be going nowhere,
although there was a hint of the beginning of a more bearish trend so a short trade from a firm rejection
of the resistance at 1.0058 could be an interesting opportunity especially if it happens early in the
London session – I would take a bearish bias if that sets up. This was a good call as the trade did set up,
although later in the day than I had hoped for and was profitable.
The picture is now more bearish as the USD weakens and the former support at 1.0028 flips to become new lower resistance.
It is also more obvious that the price movement is contained by a bearish price channel which is shown in the chart below.
I would take a bearish bias today if we have a strong bearish rejection of the resistance at 1.0025