The US dollar was showing uptrend against most of the majors since April except Swiss Franc. The USDCHF pair had grew only in April, then we saw flat dynamic in 200 points range (0.98-1 levels mostly), which gradually became more narrowed.
Now while the US dollar is showing bearish correction against all the majors, the USDCHF pair is close to test main support level at 0.9850. If the pair breaks support, then we expect the falling to new low levels since June. The Cayman indicator shows the rising of buyers to 50%. It is important to note, that Cayman had no much influence on the pair since it was at 70% border in April. So the strong bearish signal would be, when the pair falls to 0.9770 and Cayman will rise to 70% of buyers.
As we expected the EURUSD pair is continuing the bullish correction since the previous week, when we determined “rising star” formation on the Daily chart. The price is growing for 150 points since then and we think that the potential of the bullish dynamic has not been exhausted yet.
The US dollar shows us weakness while the tension and trading risks between USA and China are subsiding. This might be the main driver for the EURUSD pair on this week if both countries would succeed on upcoming negotiations.
So our targets for:
USDCHF – is selling to 0.97 level
EURUSD – continue buying with take profit at 1.16 level