Current USD rally was pushing other major pairs and crosses back to old price levels as it was trying to reach higher. USDCHF was rising each day from mid April onwards but now shows reduced momentum towards current top, signalling it will not climb much higher.
In the meantime the USD rally has started to cool down and no more further increase of USDCHF is expected so we should see a bounce off 1.00. Thereafter as the USD devalues USDCHF will make its down to previous support levels at 0.95 or 0.915.
Good explanation! I'm in short from 1.00. How do you see another bullrun coming?
Thanks!
Deep-Peat-Shark
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@Cirovski, High bond yields keeps increasing demand for the USD, however it is cooling down and USDCHF has no longer increased with each run as expected. Now we are waiting for the opportunity to sell off the USD. Only capitulation of the USD will cause a drop like I expected and we will need trading volumes for that of which we have on Tuesday, Wednesday & Thursday. Getting real close now.
Is your trade still active? And what is your opinion on movement for Sunday when market opens?
Deep-Peat-Shark
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@ipodmanmike, Yes absolutely, it has barely moved, definitely not 500 pips. I expect the price to pull back up to 5 pips at least one more time. I do not expect it to reach previous HH but I dare not to exclude it as the USD had substantial buying power left over on Friday at market close. See how Monday goes, as the first day of the week often lacks of liquidity I wouldn't be surprised this drop will be on Tuesday or later, be patient.
Thanks!