Commentary: We wrote yesterday that “the USDCHF reached 1.1299 but the correction seems shallow. Subjectively speaking, we favor a larger advance towards 1.1328 (former congestion as well) before a drop below 1.1188.” We were wrong to favor a larger correction because the pair has dropped to a new low.
The internal structure of the decline from 1.1299 suggests that there is more to the downside (1.1100?). Still, this decline should bring an end to a larger decline and give way to a sharp rally.
Strategy: Flat