USD/CHF has been through a volatile down trend with good amount of bearish pressure pushing the price downwards since the bounce off from 1.0350 area. Yesterday with 1B deficit of Foreign Currency Reserve of CHF market which was previously 645B and the currently outcome was 644B. This figure did affect the CHF growth yesterday and USD had a good bullish momentum proceeding toward 1.00 area. Today CHF has regained their momentum after forming an intraday corrective structure and as of the spike of Foreign Currency Reserve CHF is seen to regain its strength and expected to take the pair to a much lower support soon.
Now let us look at the technical view, after massive buy momentum yesterday market has been corrective throughout the day today and currently market is showing some bearish momentum to signal the spike to be a false break. If the market closes below 0.9950 with a daily close the spike above 0.9950 will be considered as a false break and we will be looking forward for the price to move down toward 0.9850 as the first support and 0.9785 as the second support.
