(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.)
3/06/2009 € USD/CHF € Friday€™s bearishness on USD/CHF, a daily chart of which is shown, manifested itself in a tentative break below the bottom border of a parallel uptrend channel that has been in place since late January. After descending down below the channel, price hit a key support/resistance level around 1.1480 before retreating back up. Currently hovering around the bottom of the parallel uptrend channel, price continues to have a technically bearish bias. Any strong subsequent breakdown below both the parallel channel and the mentioned 1.1480 level should target further support around the 1.1280 region. To the upside, in the event that uptrend support is ultimately respected and a bounce up off the bottom border of the parallel uptrend channel occurs, the top of the channel should pose strong resistance, with intermediate resistance just above the 1.1800 region.
James Chen, CMT
Chief Technical Strategist
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