FXstreet.com (San Francisco) - USD/CHF has been consolidating in recent weeks and may be set to extend the latest swing low after finding a roof in July (confluent with a 61.8% Fibonacci retracement of the decline from 1.1730 to 0.7063 level and the 200-week EMA, then at 0.9925).
This week, the market formed an inside week pin bar, the fourth inside week bar after the sharp decline the week of Sep 9. The mentioned PA formed at the 50% Fibo retrace of the mentioned decline. Worthy of note, the consolidation has occurred around an ascending trendline measured from the trough of Feb 24 to that of April 2, which continues to act as a kind of base supporting price for the time being.
Should USD/CHF trade lower in the weeks ahead, the level to overcome is 0.9230; a break below there may open scope for a test of support at 0.9080, then 0.8860 (38.2%, 0.7063/0.9970). The upside offers resistance at 0.9590 (Jan 9 high), then 0.9640 (Mar 16, 2008 low).
This week, the market formed an inside week pin bar, the fourth inside week bar after the sharp decline the week of Sep 9. The mentioned PA formed at the 50% Fibo retrace of the mentioned decline. Worthy of note, the consolidation has occurred around an ascending trendline measured from the trough of Feb 24 to that of April 2, which continues to act as a kind of base supporting price for the time being.
Should USD/CHF trade lower in the weeks ahead, the level to overcome is 0.9230; a break below there may open scope for a test of support at 0.9080, then 0.8860 (38.2%, 0.7063/0.9970). The upside offers resistance at 0.9590 (Jan 9 high), then 0.9640 (Mar 16, 2008 low).
