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Dollar/Swiss Falls Off Cliff

Last updated 2/20/2009 11:39 AM EST (GMT -5) 0 Comments - Add your comment

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FX360 Technical Analyst Staff

Technical Analyst, GFT

In this morning report ( here ), we had a USD/CHF short trade in progress which has recently hit both profit targets, but there still may be some room to the downside (also mentioned in this morning's report. The key will be a close below current intraday low at 1.1778, which may spark further losses.

However, if current Fib support near 1.1780-1.1760 holds, we may see a bullish reversal on an intraday bullish Gartley pattern completion.

The swissy has been moving in near perfect harmony as of late, with yesterday intraday feature, " USD/CHF Ro Resume Intraday Gains ," hitting both targets, and then extending to an early morning high of 1.1885 triggering our short at 1.1855 as a result of multiple bearish butterfly pattern completion.

The USD/CHF then swiftly took a dive knocking out both profit targets, but there's still some room down to Fib support near 1.1760, and 1.1720. As a result, we've adjusted/tightened stops to 1.1802, with a new intraday target of 1.1727.

However, if current Fib support near 1.1780-1.1760 holds, we may see a bullish reversal on an intraday bullish Gartley pattern completion. In this case, we will close the trade out, take our profits and run as an intraday bullish reversal may ensue.

4hr Chart - This morning's sell was triggered off multiple bearish butterfly pattern completion....	15min Chart - Prices quickly moved down hitting both profit targets, but still may be room down on a close below point D

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