USDCHF Forecast

The USDCHF had a significant bearish momentum yesterday, fell about 500 pips and hit a new record low at 0.7081 but closed higher at 0.7229 and hit 0.7250 earlier today in Asian session. The bias remains bearish in nearest term testing 0.7000 psychological level. As you can see on my h4 chart below, there is a candle after hit the new record low, which looks like a hammer formation. I am not sure about this because it seems to me that the body is a little bit too big, but any bullish correction/reversal after a strong movement which hit a new historical low is acceptable. However, any bullish correction at this phase is normal and until I see a reversal sign, my technical bias remains strongly to the downside. Immediate resistance is seen around 0.7320. A clear break above that area could lead price to neutral zone in nearest term testing 0.7400/80 area but only a movement back above 0.7650 could potentially produce a bullish reversal scenario.

©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

.