Forexpros.com Daily Analysis - 11/05/2011
May 11, 2011 9:02 AM ET
Forexpros's Blog
21 Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.
I'm still sticking with the USD/CHF daily short...
There's a stall in the U.S. Dollar that indicates that the bears are feeling brave. If this keeps up, the 75.36 high
that surrounded by two lower highs on the daily chart could signal an aggressive three-candle reversal pattern.
Along with the 50 period SMA and lack of buying support above the major psychological level at 75.00, this
could usher in near-term weakness. The Swiss Franc looks reading to move lower as the 20 period SMA sits
overhead pressuring buyers and weighting down the bounce within the (very) established downtrend.
The swing short zone remains between the 20 period SMA and 34 period EMA low but prices have not been
able to travel much past the resistance of the 20 period and support above 0.8800 remains elusive. If however
the bulls can establish support above the “00”, the tone could chance for the short-term, very quickly and
move the pair towards 0.8900. The near-term bullishness that has created the correction on the daily chart still
has the 30 and 60-minute charts in mark up trends which does validate swing buys on the 30-minute (only).
This is a counter-trend entry and should be taken on a time frame no larger than the 30.
---
New on Forexpros, the Fibonacci Calculator !
---
Disclaimer:
Trading Futures and Options on Futures and Cash Forex
transactions involves substantial risk of loss and may not be suitable for
all investors. You should carefully consider whether trading is suitable for
you in light of your circumstances, knowledge, and financial resources. You
may lose all or more of your initial investment. Opinions, market data, and
recommendations are subject to change at any time.
There's a stall in the U.S. Dollar that indicates that the bears are feeling brave. If this keeps up, the 75.36 high
that surrounded by two lower highs on the daily chart could signal an aggressive three-candle reversal pattern.
Along with the 50 period SMA and lack of buying support above the major psychological level at 75.00, this
could usher in near-term weakness. The Swiss Franc looks reading to move lower as the 20 period SMA sits
overhead pressuring buyers and weighting down the bounce within the (very) established downtrend.
The swing short zone remains between the 20 period SMA and 34 period EMA low but prices have not been
able to travel much past the resistance of the 20 period and support above 0.8800 remains elusive. If however
the bulls can establish support above the “00”, the tone could chance for the short-term, very quickly and
move the pair towards 0.8900. The near-term bullishness that has created the correction on the daily chart still
has the 30 and 60-minute charts in mark up trends which does validate swing buys on the 30-minute (only).
This is a counter-trend entry and should be taken on a time frame no larger than the 30.
---
New on Forexpros, the Fibonacci Calculator !
---
Disclaimer:
Trading Futures and Options on Futures and Cash Forex
transactions involves substantial risk of loss and may not be suitable for
all investors. You should carefully consider whether trading is suitable for
you in light of your circumstances, knowledge, and financial resources. You
may lose all or more of your initial investment. Opinions, market data, and
recommendations are subject to change at any time.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.