Commentary: The USDCHF is playing out as expected. We wrote yesterday that “the short term trend is up and there is potential for a test of former resistance at 1.1922.” The pair tested 1.1894 this morning so longs should keep risk tight as the pair approaches potential resistance. 1.1920/30 is defended by the the 100% extension of 1.1623-1.1814/1.1738 at 1.1929.
The next level of potential resistance is the 161.8% extension at 1.2047. A new long (beneath 1.1623) remains very much a possibility as long as price is below 1.1960 since the rally from 1.1623 could be a 4th wave. Until 1.1960 is taken out, bulls should refrain from acting too aggressively. Strategy: Remain bullish, against 1.1738, target 1.1920