By: Colin Jessup
The USD/CHF has closed below a weekly support zone at 0.9300 with the daily candle close today at 0.9275. This, combined with the Euro's Bullish advance today is a good indication that this pair could be once a gain turning Bearish. however, the daily candle also closed on the DMA which sits directly below at 0.9252, and might act as support for the pair in the next session. At time of writing, the pair has turned slightly Bullish but will need to break above 0.9300 before the Bears will likely build any real offence.
Combine the fact that last week's weekly candle was more or less a Bearish engulfing candle, and the correlation between some of the pairs, plus the close below 0.9300 I am Bearish on this pair. I expect to see support at 0.9160 and 0.9080 tomorrow with resistance sitting at 0.9360 and 0.9410 if the Bulls break through 0.9300. Ultimately I see this pair hitting 0.9000 soon, possibly by the end of the week.
Happy Trading!
