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Talking Points:

In our last article, we looked at the aggressive bullish move in USD/CHF after the pair found support at the key Fibonacci level at .9854. Within short order of that support inflection, prices had ascended by almost 250 pips until resistance began to show at 1.0095. But after a continued struggle at resistance that lasted for most of last Wednesday and into Thursday, sellers finally re-gained control and have pushed the pair down just as quickly as it had previously moved-up (and with a 25% larger move).

USD/CHF Technical Analysis: Bullish Stampede in Full Retreat

Chart prepared by James Stanley

This puts near-term price action in Swissy in a rather precarious position. Prices are currently trading at fresh 6-month lows, and the degree of bearish momentum that’s shown here is not something that should be taken lightly for those entertaining the idea of bullish reversal strategies. Given the intermediate-term chart, traders would likely want to reserve stances in Swissy to short or intermediate-term, momentum-based strategies.

USD/CHF Technical Analysis: Bullish Stampede in Full Retreat

Chart prepared by James Stanley

For bulls, or for longer-term approaches, there isn’t much to work with at the moment. If we do see some element of support develop between .9684-.9738, the case could be made for a bullish reversal setup. But again, given the veracity of recent declines, traders would likely want to ensure that support is, in fact, showing up with some potential of actually holding the lows before the bullish position could be triggered.

USD/CHF Technical Analysis: Bullish Stampede in Full Retreat

Chart prepared by James Stanley

--- Written by James Stanley, Strategist for DailyFX.com

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