Continuing Dollar Weakness

Price action on USD/CHF, a daily chart of which is shown, has dropped further down to reach support around 1.0600 as of Tuesday (6/2/2009) morning. This occurs after the pair broke down below three different support factors: a well-defined inverted flag, a long-term uptrend support line extending from the March 2008 low, and then the key 1.0700 support resistance region. Currently around the 1.0600 region, bearishness continues to prevail. A strong breakdown below 1.0600 support should target further major support in the 1.0400 price region. Upside resistance in the context of the current steep downtrend resides around the dynamic level of the broken long-term uptrend line.