The USD/CHF pair was in the down trend and we have seen the pair correcting since this week, today also we have seen about 55 pips drop in today´s session to test support at a fresh record low of 0.8000 level just before opening of the European session.
USD/CHF intraday technical analysis 26 July 2011, we recommend, Open short in USDCHF below 0.8105 for target of 0.8045 and 0.8015 also place protective stop loss above 0.8135.
Reason to trade USDCHF short: As the CHF has strengthen continuously as compared to USD. On daily chart we find USD/CHF is on strong downtrend and this down move must continue until the fundamentals change. We see a good selling opportunity today on Daily chart. CHF has been showing strength and is more likely to continue the current trend to test its next support level which is at 0.8045. RSI support the downtrend also stochastic had the cross over and is in favor of the trade on daily chart. So we can see the pair to weaken further, so trading in the direction of the trend we recommend to trade short on USD/CHF pair for intraday only.