USD/CHF Drops Sharply but .9205 Remains Critical

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eliottWaves_usd-chf_body_usdchf.png, USD/CHF Drops Sharply but .9205 Remains Critical

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The USDCHF has declined over 200 pips since trading into the trendline that extends off of the 2012 and 2013 highs. I wrote yesterday that “I’m respecting the upside as long as price is above .9326 (4/17 reversal day close) on a daily closing basis.” Weakness has accelerated and final Fibonacci levels at .9268 and .9239 are now of interest as potential support before the low. The latter level (.9238), intersects the trendline that is extended off of the 2/1 and 4/17 lows. .9205 (April low) is critical to the major trend (below would turn major trend down…above is still sideways).

FOREXTrading Strategy: Need to see price stabilize early in the month before attempting longs as below .9326 did damage to the near term picture.

LEVELS: .9205 .9239 .9268 .9320 .9353 .9381

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