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Forex Technical Update

Previous: USD/CHF Breaking down a Rising Channel or Flag (10/4)

USD/CHF 4H Chart 10/9/2012 8:00AM EDT

USD/CHF 10/9/2012 4H chart

Breakout and pullback: The USD/CHF was seen breaking below a rising channel or flag pattern last week. This week, we start with some support at the 0.9275 level, and a pullback. It has been a sharp pullback, though the bearish outlook still has a chance. The pullback held under the previous resistance pivot at 0.94 so far, making it a possible lower high.

Also, the pullback saw some rejection at 61.8% retracement, 0.9375. Also, the 4H RSI reading is held at 60 after tagging 30. If it pushes above 60, then the bearish momentum is lost, but for now, it still reflects possible development of more bearish momentum.

Targets: The bearish outlook focuses on the 0.9238 September-low. Below that, the bearish continuation scenario seen in the daily chart opens up the next support pivot near 0.9050.

USD/CHF Daily Chart 10:40AM 10/4/2012

USD/CHF 10/9/2012 daily chart

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.