USD/CHF's fall extended to as low as 0.9238 last week and broke mentioned target of 0.9420 support level. The break of lower channel support also showed sign of acceleration. Initial bias remains on the downside this week should extend through 0.9 psychological level to 0.8930 key level next. On the upside, break of 0.9420 minor resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish even in case of recovery.
In the bigger picture, medium term rebound from 0.7065 is viewed as a corrective move and should have completed after hitting 0.9916 resistance (61.8% retracement of 1.1730 to 0.7065 at 0.9948). Break of 0.9420 confirmed reversal and should at least bring decline to 38.2% retracement of 0.7065 to 0.9971 at 0.8861. In case of rebound, we'd expect upside to be limited below 0.9971 and bring another fall.
In the longer term picture, long term down trend from 2000 high of 1.8305 doesn't look completed yet but whether a new low below 0.7065 would be seen is somewhat irrelevant even to a long term trader. The point to note is that medium term reversal is imminent after hitting 0.9916/48 cluster resistance. The current development would favor at least some more sideway trading between 0.7065/9971 from long term perspective.
Most Popular Slideshows
- 'Game of Thrones'-like Film, 'The Queen of the Tearling,' Casts Emma Watson as Lead Star and Exec Producer [PHOTOS]
- Jackie Chan Dead 2013: Where is the Chinese Actor Amid Resurfaced Fake Death Reports? [PHOTOS]
- Asus Transformer Infinity Pad, Sony Vaio Duo, Toshiba Satellite, A Look at Intel's Haswell 4th Generation Ultrabooks and Notebooks [Photos]
- 'Fifty Shades of Grey' Movie Casting: Selena Gomez Open to Nude Role, Ready for Anastasia Steele? [PHOTOS]