By: Colin Jessup
The USD/CHF pair finally broke 0.9300 last week and is now possibly pulling back to this level before heading higher. After reaching its highest level since March of this year at 0.9546 on December 15, it proceeded to fall as much as 159 pips, closing only a few pips from the bottom of the daily candle that day. At time of writing, around noon Tokyo time, price is ever so slightly bullish, possibly indicating a turn lower during the UK or USA sessions. If prices do fall, I will be looking for support at the 0.9300 zone. If 0.9300 holds I will look for price to 'bounce' and re-test last week's high before edging higher, possibly 0.9403. If price breaks lower than 0.9300 there will most likely be resistance at 0.9190 and the 0.9000. Having said that, there is definitely less support immediately below 0.9300 than there is resistance above...from the current level up to 0.9950 +/- it has been very choppy in months past. I am cautiously bullish on this pair for now, especially with prices holding firmly above the daily moving average all last week.
Happy Trading!
