(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 line in red; 50-period simple moving average in light blue.)

1/20/2009 – USD/CHF – So far this week, dollar bulls have been relentless against the European currencies, and the USD/CHF (a daily chart of which is shown) has been no different. Price action on Monday and Tuesday has shown remarkable gains that easily broke substantial resistance around 1.1280. Currently price has risen well above this level to reach yet another resistance level in the 1.1480 region. Any substantial break and close above this level could target further resistance in the 1.1800 region. Before that potentially occurs, however, price should either consolidate or retrace, at least back to the steep uptrend support line that has been forming since the beginning of the year.

James Chen
Chief Technical Strategist
FX Solutions

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