(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.)
2/11/2010 - USD/CHF - Price action on USD/CHF, a daily chart of which is shown, has been following a steep uptrend support line since the mid-January lows. Within this steep uptrend, the bearish corrections have been relatively shallow while the bullish trend moves have been relatively strong. Currently, price is in the process of recovering from a bearish correction, and appears poised to reach for a new 6-month high if the last high around 1.0817 is surpassed. In this event, dynamic resistance immediately to the upside resides around a longer-term downtrend resistance line extending from the November 2008 high. A further resistance target to the upside resides around the key 1.1000 price region. If price is unable to sustain the noted steep uptrend, key downside support currently resides around the 1.0600 price region.
James Chen, CMT
Chief Technical Strategist
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