FXstreet.com (Barcelona) - After bouncing at 1.0360, lowest YTD level, to trade close to 1.0460, USD/CHF has fallen again below 1.0400 level during the American session. Currently the pair is trading around 1.0385/95, 0.25% below today's opening price action at 1.0405.
James Cheng, analyst at FXSolutions, comments: The dollar drop that commenced right after the U.S. Labor Day this week, which was also reflected in the other major dollar-based currency pairs, has reached strong support in the 1.0370 price region. This occurs after price broke down below the consolidation support in the 1.0550 price region, as well as a small triangle-type consolidation pattern. Today, in the process of dropping slightly below the 1.0370 support level, a new 2009 (and 13-month) low for the pair was established.
Chen concludes: although the dollar may now be taking a breather after the marked bearishness of this week, any strong subsequent breakdown below the noted 1.0370 support level could potentially lead the pair down to target parity at the important support/resistance and psychological price level of 1.0000.