(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.)
2/22/2010 - USD/CHF - Recent bullish price action since mid-January on USD/CHF, a daily chart of which is shown, has brought price up to hit a key long-term downtrend resistance line extending from the November 2008 high. When the pair reached up to hit that significant trendline this past Friday, price momentum failed in its bullishness and tentatively retreated. From a trend perspective, the pair may well be in a new overall uptrend after the bounce off parity (1.0000 price region) in early December. Any subsequent breakout above the noted long-term downtrend resistance line would lend additional confirmation for this uptrend. In that event, a key immediate upside resistance target resides in the 1.1000 price region, with a further key upside target around the 1.1250 price region. Significant downside support within the context of the strong current uptrend continues to reside around the 1.0600 price region.
James Chen, CMT
Chief Technical Strategist
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