USDCHF Forecast
The USDCHF had a significant bearish correction momentum after fell below 1.0750, bottomed at 1.0650 and closed at 1.0660. The bias is bearish in nearest term as we are now in bearish correction scenario testing 1.0507 area. We seem to have a good intermediate support around 1.0650 area so we need a consistent move below that area to continue the bearish momentum. Immediate resistance at 1.0700. Another movement back above 1.0700  should diminish the bearish correction scenario back towards 1.0800/50 area.

Last Saturday, I showed you the hammer candlestick formation on daily chart as a warning of a potential upside correction. The fact was price attempted to push higher, topped at 1.3838 but whipsawed to the downside, bottomed at 1.3531 and closed at 1.3617, not so far away from the opening price on Monday at 1.3665. Yesterday, we had another hammer on daily chart, which is for me suggesting the same thing: potential upside correction. Actually, hammer is a bullish reversal pattern, but this time I don’t believe that these hammers would trigger a bullish reversal since the fundamental of the Euro zone doesn’t support such conclusion.

The EURUSD touched 1.3595 level yesterday as Brussels summit failed to give a detail plan of the rescue package for Greek but closed significantly higher at 1.3692. Although market seemed disappointed with the absence of the detail, the fact that Euro bounced to the upside may indicate that traders still expect a convincing rescue plan. The situation can be very tricky at this phase. Unless EU come up with satisfying detail, Euro should keep under heavy pressure.