Another 76.4% Level Looms in USD/CHF

The FX Specialist view - Since early June a relatively unbroken fall in USD/CHF has been seen, from a 76.4% resistance/recovery level. This has now neared a 76.4% pullback level and signs are creeping in of some bear fatigue...

• WEEKLY CHART: The 2010 recovery found clear resistance from the 1.1735 76.4% level of the whole 2008-09 downmove. Subsequent pullback has been decisive, but the detail on the Daily chart is interesting now...
• DAILY CHART: The pullback from that 76.4% resistance has drawn nearer to the 1.05340 76.4% retracement. We wait to see if support emerges near here, but already note that the s/term chart structure could be showing signs that bears are beginning to tire. This is supported by the relatively oversold nature of the RSI indicator. We await reaction with interest – support is expected.

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