The low is 0.9200 exactly 0.9180 as the dollar comes under pressure.
Just below 0.9200 we have the Jan 2013 support line at 0.9183 which has held on the last 2 occasions in June and August.
USD/CHF daily chart 20 August 2013
Last Friday I noted that there was potential for a further dip. USD/CHF bulls beware We had the Morgan call for longs and they’ve just been stopped out as it trades 0.9180. The reason I called out the MS shout was not because I didn’t believe in their strategy but because I couldn’t understand their entry level. For me it’s not about trying to be better than the banks or to shout it from the roof tops that they got it wrong or whatever, it’s about looking at the trade and seeing the risks. There are plenty of people who follow bank recs like sheep because they don’t have the ability or experience to see the trade themselves. That inexperience has now seen them out of pocket. Morgan’s have my sincere apologies as I got their stop wrong. It is at 0.9160 not 0.9190. I still stand by call that the entry is all wrong but I’ll be the first to put my hand up when I get something wrong.
Even now as I write we’ve bounced from the support line back above 0.9200. I’ve taken a small long at 0.9185 and, unsurprisingly, hoovered up some EUR/CHF at 1.2305.
