(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; chart patterns in white; 50-period simple moving average in light blue.)

2/18/2009 – USD/CHF – Price action on USD/CHF, a daily chart of which is shown, continues to bounce around within the borders of a rising wedge formation. Considerably bullish within the last couple of days, the pair has risen sharply from the bottom of the wedge to the top, and has been fluctuating right around the upper border as of Wednesday (2/18/2009) morning in New York. This upper border currently coincides approximately with a key support/resistance level in the 1.1800 price region. With any continued bullishness and a strong breakout and close above both the wedge pattern and the 1.1800 area, price should meet immediate further resistance around the 1.1925 prior support/resistance region. Dynamic support to the downside continues to reside around the uptrend support line that serves as the bottom border of the wedge consolidation.

James Chen, CMT
Chief Technical Strategist
FX Solutions

IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.