USDCHF - Weekly Strategy (04-08 Feb 2013)

Pivot: 0.9120

Recommendation: SHORT positions below 0.9120 with 0.9000 & 0.8880 as next targets.
Alternative scenario: The upside breakout of 0.9120 will call for a rebound to 0.9226/323.
Comment: The USDCHF declined sharply last week, broke below the main support 0.9077, this scenario suggests that rise from 0.9077 has already finished at 0.9388, and the pair should extend its weakness towards 0.9000/0.8880 levels.However,break below 0.9030 is indeed to accelerate the bearish move to 0.8880/0.8770 levels. On the upside break of the key resistance 0.9120 will turn intraday bias to neutral, but any recovery above 0.9120 is supposed to be limited below 0.9323 to bring decline to 0.9000/0.8880 levels.

Best Regards

Haitham

Tags: USD/CHF, USDCHF

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Comment by Rakesh Kumar on February 3, 2013 at 7:19am: I don't think mate that it will go below 0.8900 level as Swiss government intervene now a days as japanese government do. They will start selling CHF to make it weaker and they have done it in the past.

Comment by Ashraf Abu-Abdou on February 3, 2013 at 2:10pm: I agree with your analysis, Haitham. The only fear i have about this is that the Swiss bank steps in and sells CHF as it' did before

Comment by Cho Xom on February 4, 2013 at 1:59am: @ Kumar: if there is any intervention from the SNB, it will be on EUR/CHF, as they have almost nothing to do with USD/CHF. Since I am still on EUR buying side, I am also buying CHF :)