#Forex – Back to the All-Time Lows for the EURCHF?
After pretty much doing what we said it would last week bouncing to the 20ema and the look for sells after the price touches it, the pair sold off after retracing and rejecting off the 20ema and 50% fib of the last major down-move.
The pair did not dis-appoint as it sold off 233pips from high to low and was selling from market open with not even a wink higher communicating the selling pressure was back on and the rejection at the fib/20ema combo was for real.
It then posted an inside day which is not surprising considering how much it sold off in one day and has since started selling again looking to resume its downtrend as global fears of further economic slowdown both in the US and continued problems in Europe make the CHF a currency of choice in the region.
Since today’s selling has been strong from the beginning with only a mild up-tick of sorts to start the day, the pair looks set to close towards the low suggesting the selling pressure has been on all day and is likely to continue. Any major 4hr close below the 1.1500 will likely target the all-time low at 1.1405.
Could it go beyond this? Well considering the regional fears are not likely to dissipate soon, nor the global concerns, and the fact this pair has continually taken out new lows, we suspect it will likely find lower ground but may pause at the 1.1400 handle testing the buyers there to see if there is any resolve.
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