USD/CHF Continues Lower after Failed Bottoming Attempt

by Admin

Awards 2013

USD/CHF 1H Chart 4/16/2012 8:55AM EDT


Consolidation breakdown: USD/CHF is pushing to a new low in April after consolidating a bit last week and failing to form a bottom this week. A rally failed to break a recent high at 0.9331 and price also held under the 200-hour SMA. The RSI held under 60 for the most part, reflecting maintenance of bearish momentum. As we get into the 4/16 US session, USD/CHF is cracking the 0.9263 low, signaling bearish continuation in the short-term.

Failure to push back above 0.93 should support the bearish continuation case.

Target: To the downside, the near-term target is 61.8% retracement (of the 0.9021-0.9566 rally) at 0.9229, which also happens to be a previous support pivot. Below that the 78.6% retracement is at 0.9138, while the 0.9021 gets us back to the start of the 2013 rally.