By: Mike Kulej
On Tuesday, the USD/CHF continued its sell off, reaching as low as 0.9735. Interestingly, that was reported in numerous media outlets as the all time low. Not far from the truth, but this happens to be an error. The all time low in this pair is 0.9635, established March 2008.
Putting this minor discrepancy aside, the market is only 100 pips away from that level and chances are that it will be tested. The downtrend is very strong – the price is way below the main down trendline and the 100 SMA. On the other hand, the USD/CHF is falling at a very steep angle, as demonstrated by the secondary trendline, something that is not sustainable for too long. The market could find support soon, at or near the all time low. Everybody will be watching that level and increased activity there should be expected.
Other technical indicators also suggest a possible support soon. The weekly RSI has entered the oversold area, and the MACD is in a divergence with the price. All this will make the 0.9635 level, if the USD/CHF gets there, very interesting.
