USD/CHF Downtrend to Hold? (September 25, 2013)

USD/CHF has been trending lower in the past few days but it seems to be having difficulty sustaining its decline past the .9100 major psychological support level. With that, a pullback might be in the works, possibly until the falling trend line on the 1-hour time frame.

The 61.8% Fibonacci level lines up with the .9200 major psychological level, which has acted as support in the past. However, the 38.2% level lines up better with the falling trend line and might also act as resistance.

Stochastic is already in the overbought region, suggesting that the selloff could resume anytime soon. Switzerland is set to print its UBS consumption indicator today and an improvement for the month of August could allow USD/CHF to decline again.

By Kate Curtis from Trader’s Way