By: Colin Jessup
The USD/CHF reversed right back to the 0.9225 level that it worked so hard to break out of for most of February. After 2 days of solid Bullish action price worked itself up to a strong resistance zone at 0.9310, (very close to the 61.8% retracement level) where it stopped and today price did a 180 degree turn. The pair has been slightly bearish throughout the Asian trading session as well with very low volume as is normal. There is strong support at this level of 0.9225 where price is currently trading with just over 2 hours to the London open. Support is especially strong at 0.9190 with the Daily S1 below at 0.9170. Below that we have the Daily S2, Weekly S1 and Monthly Pivot all converging at around 0.9100. That said, if price remains above the Daily Moving Average at 0.9175 I will maintain a Bullish outlook on this pair, seeing this pullback as simply a pullback before trading higher, but if we close below 0.9175 my feelings on this pair will turn truly bearish. If price does rally and resume heading north, look for plenty of resistance at 0.9245 and again at 0.9290 before reaching the same resistance level that stopped the Bulls yesterday at 0.9310. There is a nice technical vacuum above 0.9370 should price get that high, it is likely that it will trade up to 0.9460 at least.
Happy Trading!