USD/CHF Headed to .99?

Last updated 10/20/2009 1:06 PM EST (GMT -5) 0 Comments - Add your comment

FX360 Technical Analyst Staff

Technical Analyst, GFT

Earlier this month we discussed some key technical break-out levels for the USD/CHF along with how a drop below 78.6% support near 1.0240 would likely send the swissy down to converging support around .9930 (defined by an emerging weekly bullish Gartley pattern here ) with some minor support coming in around 8hr bullish butterfly pattern completion near 1.0110 and 1.0017 (below).

After a couple days of expected consolidation, prices managed to break below 1.0240 and quickly dropped down to the first bearish break-out level near 1.0117 (first 8hr bullish butterfly pattern completion) before posting a brief ~100 pip rally. Prices have since dipped below this level, and this morning spike has found 61.8% resistance near 1.017. We would now expect another surge lower to 1.0017 where we may find similar support especially if prices manage new lows (below 1.0080). Likewise, a close below 1.00 would likely send the USD/CHF down to .9932 where we may see a more significant rally due to the long-term confluence of support and bullish Gartley pattern completion (see " USD/CHF Break Out Levels... "). 

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