By: Colin Jessup
The USD/CHF pair has broken below the Weekly Support (S1) level of 0.9110 with roughly 20 minutes to go before the close of the Tokyo trading session. Price has been testing this level for well over a week straight beginning back on January 27. The Daily Moving Average is clearly turning Bearish with the RSI also strongly bearish. This comes as no surprise of course as price action has been bearish overall since early January. With the break of this level comes the question as to how far it will go, and is it just a FOBO (Fake Out, Break Out)? As all indications are indeed bearish, this could be the continuation traders have been waiting for. If price holds below 0.9110 the next support level will be 0.9044, and 0.8976 beyond that. To the upside resistance will clearly be 0.9110 and 9150, plus the Weekly Pivot level is directly above at 0.9179. As I have been expecting a break to the down side, I am cautiously bearish on this pair, but with another hour before London Trading opens, it could easily change direction if the big players don't agree.
Happy Trading!