Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Daily Technical Strategist: USDJPY

USDCHF: Broader Risk Points To The Downside.

USDCHF: Our broader outlook on USDCHF remains lower despite its present attempt on the upside due to a correction. Its attempt to push above the 0.9340 level failed on Friday forming a shooting star candle pattern (reversal signal) and following through lower in early trading today. The risk is for this to extend further lower towards the 0.9125 level with a violation of that level turning focus to the 0.8979 level and ultimately the 0.8897 level, its 2011 low. Further down, support comes in at the 0.8800 level and then the 0.8700 level, all representing its psycho levels. Its daily stochastic is bearish and pointing lower supporting this view. Alternatively, a break and hold above the 0.9340 level will have to occur to open up further upside risk towards the 0.9368 level, its Mar 09’2011 high. We expect that level to cap gains and turn the pair lower again but if that fails, further strength could develop towards the 0.9503 level.

Daily Technical Strategist