Last week the stock of Alibaba rallied. The price moves close to the resistance line connecting April and July highs and the 100-week MA in the 175.00 area.
USD/CHF: short at higher levels
SELL 0.9880; TP 0.9800; SL 0.9900
USD/CHF formed a “hammer” candlestick on D1 yesterday. It means that it may hold at the support in the 0.9820 area for some time and try to test levels around 0.9870/90. However, the overall trend is bearish as can be seen from the daily moving averages that have a negative set up. As a result, the recovery to this area will likely meet resistance (July 2 high, MA on H4), so we’ll look for the opportunity to enter a short position with the initial target at 0.9800.
To gain the ability to head higher, towards 1.3445, USD/CAD needs to overcome 1.3355 (61.8% Fibo of the May-July decline).
EUR/CAD has tried to return above the previous support and now resistance line connecting the lows of 2015 and 2017.