USDCHF Downtrend Intact (November 8, 2013)

Thanks to the better than expected headline GDP figure released yesterday, USD/CHF surged up to the .9200 major psychological level which was in line with the 50% Fibonacci retracement level and the falling trend line on the 4-hour time frame.

Stochastic crossed down from the overbought region, hinting that dollar bears will push this pair down, possibly until the previous lows near .8950. Shorting at market with a stop above the previous spike to .9250 and a target of .8950 will give a 2-to-1 return on risk.

Events risks for today include the non-farm payrolls release, which is expected to print a weak reading because of the recent government shutdown. 

By Kate Curtis from Trader’s Way