USD/CHF has followed USD/JPY down the pan and the other crosses have followed

The dollar has been down to 0.9633 while the euro fell to the 1.2420’s.

GBP/CHF has held up on support at 1.4500.

I don’t know why there have been big drops in the pairs (USD/CHF aside) so we may be seeing some profit taking or a little panic run to safety.

The market may have also got ahead of itself with the Jordan comments.

I would suspect that this is going to be a short term move so dip buying towards 1.2400 and building a position if it goes lower will be my play.

The run higher yesterday stopped bang on the 38.2 fib from the Oct 2007/Aug 2011 hi/lo.

eurchfmonthly 23 05 2013

If you managed to short it on that then very well played. I would have loved to have taken a short there. That’s easy to say after the fact I know, but it’s that sort of big level that I love.

The fall has taken us through the 55 H4 ma at 1.2464 and the 38.2 fib from 17 Apr/May lo/hi at 1.2453. We’re back above both for now so that should be a first base despite the spike to 1.2420.

eurchfh4 23 05 2013

Strong support is seen at 1.2400 should the fall continue. Resistance will now be seen at 1.2509 and 1.2525