USD/CHF has been grinding lower through 2011 and recently the pace accelerated. A s/term halt and sharp rebound has followed, but at the moment this could only be temporary.

  • WEEKLY CHART: The downtrend recently neared the 2.618 swing projection off prior Nov-09/Jun-10 upmove, at 0.6975. Following a s/term rebound note the current 0.8180 23.6% retracement of the move from 1.1730 Jun-10 high, offering first important resistance.
  • DAILY CHART: The recent acceleration lower has reversed temporarily after testing the channel base support area. First interesting resistance comes from the congestion area between 0.8550 and 0.8271 28-Jun low. Within this runs the bear channel top at 0.8345 currently. A recovery through this would suggest a more prolonged reversal was underway.

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