(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
5/26/2010 – USD/CHF – Price action on USD/CHF, a daily chart of which is shown, reached up to approach key resistance in the 1.1700 price region on Tuesday (5/25/2010), establishing a new 13-month high for the pair. After hitting this long-term resistance high, price retreated substantially, forming a clear shooting star candle pattern on the daily chart. Wednesday’s (5/26/2010) price action finds the pair consolidating well under resistance as of early New York session. Despite the shooting star retreat, price is still very much entrenched within an exceptionally steep uptrend. Within the context of this steep uptrend, strong downside support continues to reside around the 1.1400 price region. In the event of a bullish breakout above the noted 1.1700 price level, price could potentially go on to target further upside resistance in the 1.1950 region.
James Chen, CMT
Chief Technical Strategist
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