The USD/CHF pair has retreated to the 38.2 percent Fibonacci retracement level of 0.9135. According to Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, a plunge below here would open the way for a slide into the 0.9115/0.9080 level.
“The USD/recovery CHF’s from its current July low of 0.9133 has reached the 50% retracement level of 0.9199, which has been stopped for two days in a row. At 0.9239/73, the June and current July highs can be noted.”
“While the cross is still trading below the 0.9239/73 highs, the current July low of 0.9133 is expected to be revisited, with additional weakness pushing it towards the 0.9115/0.9080 region. There’s a chance we’ll see some consolidation there in the near future.”
“Below 0.9072 (200-day MA), a drop to the late May and early June highs of 0.9054/46, as well as the early February high and the 78.6 percent retracement at 0.9000, would be possible. The 0.8926/31 May lows are being defended for the last time.”/n
