Those following the previous USDCHF idea (see attached: "Tracking the highs in USDCHF (Weekly)" will know that we have potential to retrace as far as 0.918x from this move.
After attempting to break the highs in the wedge we aggressively sold off, in other words all those breakout traders and momentum bets were caught on the wrong side by smart money tracking the real direction here via rates. Smart money outguessed the dovish Fed tilt miles in advance and with a 50bps cut in July making the round we can extend as low as 0.918x.
The first target to track is the ABC sequence, no surprises it is the same drill as in EURUSD and DXY charts. The ABC sequence comes into play at 0.963x. Any breaks below here will trigger the selloff for the 3rd wave targets in the sequence.
Best of luck all those trading CHF
After attempting to break the highs in the wedge we aggressively sold off, in other words all those breakout traders and momentum bets were caught on the wrong side by smart money tracking the real direction here via rates. Smart money outguessed the dovish Fed tilt miles in advance and with a 50bps cut in July making the round we can extend as low as 0.918x.
The first target to track is the ABC sequence, no surprises it is the same drill as in EURUSD and DXY charts. The ABC sequence comes into play at 0.963x. Any breaks below here will trigger the selloff for the 3rd wave targets in the sequence.
Best of luck all those trading CHF
