(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.)
3/26/2010 - USD/CHF - Price action on USD/CHF, a daily chart of which is shown, has turned down significantly once again right near a long-term downtrend resistance line extending from the 2008-2010 price high hit in November 2008. This long-term trendline has been respected on several occasions since its inception. The current bearish turn occurs after significant bullish price action earlier in the week, stemming from the bounce up off 1.0500 last week, brought price up to approach the trendline closely. USD/CHF is currently still entrenched within an uptrend extending from the November 2009 low below parity. Until and unless this uptrend is broken to the downside (with a break below 1.0500), the current medium-term directional bias continues to be bullish. On a breakout above the noted long-term downtrend resistance line, a key upside resistance target resides around the 1.0900 price region, which represents the last major high within the current uptrend. A breakout above that level would confirm an uptrend continuation and potentially target immediate further resistance in the key 1.1000 support/resistance price region.
James Chen, CMT
Chief Technical Strategist
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