by Himanshu Jain
(Tokyo)
usd/chf forecast
USD/CHF broke the supports mentioned during the last weekends and quoted above and even broke below 0.9200 to touch 0.9114 and to close with strong short-term bearish sentiments at 0.9128.
The strong drop and price action of the last week suggest that we can expect some more downward correction towards the next support level of 0.9064/0.9065. This level represents the support level during the beginning of December 2011 and is also near the Fibonacci 50% retracement of the upward move during October 27th, 2011 to January 8th, 2012. On the downside a firm break of this and then the psychological level of 0.9000 may take USDCHF towards 0.8950 or the Fibonacci 61.2% retracement level of the above mentioned upward move. Our mid-term outlook will start changing to bearish only with a firm break of this and then 0.8800 support to expect any move towards the low of 0.8567.
On the upside, a break over 0.9340 will again start changing our focus towards upside and this will get confirmed with a firm break over 0.9415 to expect a retest of 0.9596.
You may also check daily technical usd/chf analysis and the weekend usdchf forecast at ForexAbode.com
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