Yesterday we had mentioned an inverted head & shoulders pattern.   Today the neckline was broken and price action pushed to our projected target of 1.49.   This is the top of the congestion back in January and we would need to clear 1.4950 and then 1.5 to reach the next target of 1.5165.   Now that we are back in this congestion we need to establish our support.   As of now we see 1.4855 as our short term support and 1.4745 as the next support.   If all support is broken and there is a fall below 1.46, then 1.45 is seen as the potential bottom of this bear leg.

Price action has been very similar to the Euro trading.   Today’s breakout from the flag pattern has now signaled a bull reversal.   Our potential target is at 1.8950-1.9.   If there is to be a drop then support is seen first at 1.8700 then 1.8675.   Below that is seen at 1.8550.

Today’s drop was larger than we had expected yesterday.   Falling below 109 and coming back to the previous resistance, now support, of 108.30.   Plus it looks as though the 6 month trendline has been pierced once again.   So, was the 50% fib retracement it?   Will there be another retest and possible break above 110.5?   If that will be the case then 113.35, 61.8%, should be the potential target.   If 108.30 is cleared then 107.30 could be considered the next bear target.   Below there could lead to another free fall as seen in October – November.  

Today’s USD/CHF analysis is a chart only.   We have a potential breakout pending to the downside that could fall as far as 300 pips.