USD/CHF Contends with 200 DMA and Former Low at .9021
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-“Since failing at the line that extends off of the July 2013 and January 2014 highs, USDCHF has dropped sharply, traded sideways, and dropped sharply again. Barring a move above .8861, the risk is for a drop into lines that extend off of recent lows. The lines cross .8600 and .8630 or so this week (depending on which lows are used). The October 2011 low is at .8567 and the 50% retracement of the advance from .7066 is at .8519.” Don’t forget about the levels mentioned but the implication from the divergence with EURUSD (see EURUSD section) is that an important low is in place.
-The near term path is higher above .8896 but USDCHF faces a load of levels up to .9020 or so. The October low is at .8967, the 200 DMA is at .8996, and the February 2013 low is at .9021. Below .8896 would likely give way to .8860.
LEVELS: .8870 .8915 .8959 | .8991 .9021 .9063
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