Daily Forex Update: USD/CHF

The daily chart of the USD/CHF has recently broken lower through its 200 period simple moving average. This break is typically a very negative sign - especially in a market like the one in which the USD/CHF finds itself, which has been trending lower since making a high at 1.1603 back on June 2. After breaking 1.0500 during Thursday's session, bearish momentum began to fade just below 1.0490. This is an unusual stall since, typically, breaking a whole, round number level such as 1.0500 would usher in more selling momentum.

The reason for the stall in the USD/CHF can be found farther back in the daily chart's price action. The USD/CHF found a bottom between 1.0507 and 1.0435 back in March and April of 2009; notice that the upper part of this April-to-May low range overlaps with the current Autochartist Forecast area between 1.0508 1.0463 (F). This means that the Forecast support seen on this intraday 60-minute chart is coinciding with the one-year low for this pair.