USD CHF must hold retracement zone to ignite another up leg.
After building a support base for the better part of a month, the USD CHF turned the main trend to up following a break out rally through the last main swing top at 1.0955. The move was confirmed even further when another main top at 1.0986 was broken. Finally, the penetration of the retracement level at 1.0980 should have been another sign of developing strength.
Although all indications on the chart were for higher markets and a challenge of the retracement zone at 1.1163 to 1.1298, buyers did not step up to launch a strong follow-through rally.
Once again sellers emerged to push this market into a retracement zone. Currently, the main range is 1.0590 to 1.1020. This makes 1.0805 to 1.0754 the next downside target.
With the main trend up, holding this retracement zone could trigger the start of another leg higher.