USD/CHF just broke below the key .9100 handle on Friday’s dollar weakness, but the pair might be due for a quick pullback before heading any lower.
The 1-hour chart shows that the former support at .9100 lines up with the 61.8% Fibonacci retracement level, which makes it a good area of resistance. Stochastic is in the middle, suggesting that dollar bulls have enough energy to push for a retest of .9100.
There are no major reports from Switzerland and the US so ongoing trends might continue. Take note that the US debt ceiling deadline is approaching and a potential government shutdown could weigh on the dollar.
Shorting at .9100 with a 50-pip stop and a target of .9000 would be a 2:1 trade.
By Kate Curtis from Trader’s Way