The USDCHF chart is in limbo, like so many of the USD charts lately as the pair shied away from a downside break lately, but needs follow through higher to argue that the trend is changing.
USDCHF recently pulled back from fresh multi-month lows below 0.9240 and then even followed through higher with a rally above short term resistance yesterday around 0.9300, offering some further evidence that the lows may be in for now. But we’re still in the shadow of a considerable sell-off from the late-July highs and the chart needs to pull higher through the 200-day moving average, currently just below 0.9400 and the obvious flat-line resistance a bit higher toward 0.9450 before the pair has more thoroughly neutralized the downside threat.
John J Hardy,
SAXO BANK