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Forex pairs in this Article » USD/CHF
FXstreet.com (Athens) – The USD/CHF has been trading slightly downwards and in a tight range on Thursday’s Asian trading session – after having already broke 2012 lows as of 0.8931 – amidst a mild risk on sentiment due to upbeat Chinese PMI.

USD/CHF breaks 0.8931 low of 2012; will it be a corrective pullback or a trend reversal?

The USD/CHF continues to set up its bearish stance on Thursday after the yesterday’s sharp fall on the Chinese woes. The cross is immensely wounded as it broke decently the barrier as of 0.8931 – 2012 lows – and the support line connecting past August’s to October’s lows, therefore, now it remains to see whether is a corrective pullback from its uptrend movement since 2011, or a trend reversal. Taken for granted, that the today’s released Chinese PMI released at 50.9 at a seven-month high and above the 50 level (which separates growth expansion from contraction), the USD/CHF might find a solid support. Briefly, traders should bear in mind that the yesterday woes on China seem to be mostly over the top as according to Ryan Littlestone from Forexlive "The numbers involved (around $4bn) are peanuts in the Chinese banking sector which posted H1 profits of over $76bn.” In combination with today’s solid Chinese PMI, the pair might find an additional support. Market participants who want to realize themselves the overdone exaggeration on China liquidity concerns, are invited to read the following link http://www.fxstreet.com/news/forex-news/article.aspx?storyid=aaa947f2-e7cc-4993-a6ca-a59f2d6a1ce9

Technical Perspective on the USD/CHF

Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF is in new lows for the year and attention has reverted to the February 2012 low at .8931 and the base of the 15 month down channel at .8903. Directly below here lies the 38.2% retracement of the move up from the 2011 low, this is located at .8862. These are 2 major supports and we are alert to the idea of reversal down here.”
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