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Forexpros.com Daily Analysis - 11/05/2011

May 11, 2011 9:02 AM ET
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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 !


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