USDCHF’s major resistance levels are seen at 0.97-9771.
The rallies have rejected at these major resistance levels in the recent past.
Shooting star pops at the same resistance at 0.9704 levels but on the contrary, the bullish DMA crossover puzzles trend.
More dips seem to be on cards upon rejection below this stiff resistance zone of 0.97/9770, leading oscillators signal overbought pressures. RSI has historically, shown the faded strength at 61 levels (refer daily charts). While stochastic curves have approached above 80 (which is bearish territory) and displaying %d crossover to indicate overbought sentiments.
On a broader perspective, USDCHF major trend forms rising wedge pattern, price behaviour in the major trend slides back to wedge baseline (refer monthly chart) and remained below EMAs.
For now, it is attempting to breach wedge baseline but bulls activate to hover at baseline.
This bearish sentiment is backed by the momentum signalled by leading oscillators on monthly terms as well. Well, we see whether bears manage to breach wedge baseline and sustain below..? Otherwise, we may see bounce back above wedge formation again.
Initiate buy near-month futures to replicate long hedge. Hence, at spot ref: 0.9694 we advocate arresting bearish risks by initiating shorts in futures contracts of near-month expiries by keeping strict stop loss at around 0.9425 levels.
While the FxWirePro currency strength index for the USD has been bearish by flashing a shy above -55, while CHF has also been highly bearish by flashing -138.
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