USD/CHF may see further downward moves

After a brief test of 0.9022 the psychological support of 0.9000 ranges was keeping the currency pair in a sideways mode for past few days. The price action channel is just broken. This indicates that the pair may go further down to test 0.9022 and possibly below 0.9000.

Overall outlook:

The resistance faced below the key resistance of 200-day moving average and then the break below the 55-day EMA had suggested that the reversal of the recent upward move was on the way and bearish sentiments have once again caught up. Please check this USD/CHF update for the same. The break below 0.9076 which was the low of the sideways move during December 16th to January 1st have made those bearish sentiments even stronger. The only possible factor in favor of USD/CHF is a possible support of 0.9000 psychological level.

On the downside any break below the recent 0.9022 should find support near 0.9002 of April 2nd, 2012. In case this support is broken then below 0.9000 we will expect further downward move towards 0.8931 which was the support level of February 24, 2012. If the support of 0.8931 fails then USD/CHF may enter a longer-term bearish phase.

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