Forex Technical Update
- The USD/CHF hit our breakout target of 0.8240 (to the exact pip as seen in the 1H chart).
- Then it slid sharply below a consolidation pattern and is now breaking below the 0.8025, 61.8% retracement level.
- The 0.80 level is a psych support, and a previous resistance level of a consolidation pattern.
- The 200SMA is also right here and being tested.
- The 1H RSI dipped way below 30, so this is not looking like a correction anymore, though for now, the market relative to its 200SMA still has a bullish stance in this time-frame.
- Therefore, the bullish scenario looks like it should be conservative. However, the bearish scenario should still be shelved (now that there is already a sharp slide) until we at least break below 0.80, and even below 0.79, then fail to break back above 0.80.
- Then we can be looking back down at the 0.7766 pivot. Below that, we open look at the 0.76 area.
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Fan Yang CMT
Chief Technical Strategist