The USD/CHF, along with its cousin the EUR/USD has started to reverse from the highs and lows made last week (low for EUR/USD), both of which are levels not breached since the area turned into resistance in December of 2010. Yesterday we saw the pair print a daily pin bar which shows price making another attempt to move higher before closing lower than opening and closing below the Weekly Pivot at 0.9805 for the second time in as many trading days. Also of note is that the pair has closed below the EMA 5, and has touched the EMA 13 but has not breached the level yet. The key level for the pair will be the Weekly S1 and previous highs for 2012 at 0.9740 +/-. This area was the high for May, and saw price fall dramatically after touching it in June. I see the pair possibly falling to about 0.9715 where the 38.2% retracement level sits, or possibly slightly deeper to 0.9696, the Monthly R1 and previous resistance level that is now acting as support. I am very Bullish on this pair per the chart patterns, but we are definitely due for a price correction or consolidation, and breaking the new high of 0.9872 will be no small feat. If broken, we will be looking for the next profit taking area to be around 1.0500 with resistance along the way at 0.9900, 0.9950 & 1.0006.
Happy Trading!