Forex Technical Update
The USD/CHF topped off during the 11/18 European session as it broke below a projected channel as well as the base of the patter at 0.9125. Gearing up for the US session and the last of the week, the market is at an important support cluster. There is the 50% retracement of the latest swing from 0.5953 to 0.9229 at 0.9093. You also see the 200 hour simple moving average, which acted as support 11/3 and 11/11, but is now being cracked.
If the market indeed pushes lower, toward 0.9060, we have the 61.8% retracement here. Note that the RSI is dipping below 30, so there is a near-term oversold condition. However if a subsequent pullback fails to break back above the 0.9125 area or even the support cluster near the 0.91 level, we have confirmation of further correction to the downside. The 0.8950-0.8960 level is in sight after this breakout and confirmation.
The 4H chart shows that near this level, we have another cluster of support - the 200 period SMA, reinforced by a pivot established first 11/1 as resistance than 11/11-11/14 as support. Also note the 38.2% retracement of the 0.8567-0.9229 swing at 0.8977.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.