FX.co ★ USDCHF rejected at key Fibonacci retracement.

USDCHF is now trading around 0.9226 after reaching as high as 0.9273 after the 0.9156 low. On a weekly basis price continues to hold above the key upward sloping support trend line, now found at 0.9125. In the near term, the rejected at the 50% retracement and the decline below the 38% level is not a good sign for bulls.

Black lines -Fibonacci retracement levels

USDCHF could very well have finished the counter trend bounce after the decline from 0.9372 to 0.9156. Price has retraced so far until the 50% level and is now turning lower. This is not a good sign. Support remains at recent low of 0.9164 and a break below it will increase chances of breaking below the major support trend line at 0.9125. Currently it seems more likely that price has formed a lower high at 0.9273 and we resume the downtrend. I believe USDCHF is vulnerable to a move lower towards 0.9125 at least.