USD/CHF gave up gains it made on Tuesday in the Wednesday Trading session. As you can see by the chart, we had a rectangle followed by a break down and a retest of the rectangle area. This looks like a typical sell patter with some resistance around the 82 level. The analysis of this can be backed up by looking at the CHF via other currencies which also looks like a short-term sell off of the CHF is occurring which makes sense given sense given that currencies recent rallies against other cross currencies.
Looking at the EUR/CHF we have had a hammer form which is a bullish signal at the 116.6 level. We might be attempting to make the previous bottom at 118. We might see a few pip increase however the trend is overall down so nothing to get too excited about. It looks like a relief rally rather than the CHF being undesirable vs the EUR. WE will be looking for opportunities to sell this currency short as it continues this short term rebound. We believe the first serious level of resistance is the 118 and at the first sign of any bearish candles, we will be looking to short sell.
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