USD/CHF: Bears Retain Control
USD/CHF has broken down to see marginal breach of the 0.9089 swing low following last week’s completion of a bull trap.
The rebound from 0.9089 to 0.9300 is seen as a completed correction of the decline from the 0.9596 January swing high, with risk seen for fresh trend weakness.
While 0.9263/0.9300 caps, the risk is seen for sustained loss of 0.9089, a break which should see the bear run extend towards psychological 0.9000 then the 200 day moving average (currently at 0.8768) ahead of a reaction low at 0.8568.
Re-capture of 0.9300 would suggest basing, although broken support at 0.9407 would need to be cleared to turn the longer-term outlook positive for the 0.9596 swing high initially.