USD/CHF - 0.8722
New strategy:
Stay on the sidelines
Although the greenback faced heavy offers yesterday 0.8835 and folds abruptly, low break this week in 0.8671 is required to confirm the downward trend has resumed and extend the weakness of the 0.8640/50 and maybe toward 0.8600However, close to the term oversold condition would limit the inconvenience and make later rebound.
On the head, recovery of low intra-day 0.8690 can provide testing of low cloud Ichimoku (now 0.8745), however, break the upper than Kumo (now at the 0.8769) is necessary to point out that the withdrawal of the 0.8835 ended and make more strong rebound 0.8800.
As near-term Outlook is mixed, we prefer to remain on the sidelines in the meantime.
