(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.)
6/24/2010 – USD/CHF – Price action on USD/CHF, a daily chart of which is shown, has consolidated right above key support in the important 1.1000 price region after bouncing up off this level on Monday. The past couple of weeks have been extremely bearish for this currency pair, as the Swiss franc has strengthened dramatically. Currently, as of Thursday (6/24/2010) morning, USD/CHF is in a bearish holding pattern just above 1.1000. If price manages to breakdown below this key level, an important support target immediately to the downside resides around 1.0900, a significant prior support/resistance level. Slightly below this support target is a dynamic support uptrend line extending from the late November long-term low. If price soon makes a clear bounce up off current support, strong upside resistance resides in the significant 1.1250 price region.
James Chen, CMT
Chief Technical Strategist
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