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