(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.)
4/07/2010 - USD/CHF - Price action on USD/CHF, a daily chart of which is shown, has risen within the last week to hit a long-term downtrend resistance line extending from the November 2008 high. This occurs after a medium-term uptrend line extending from the November 2009 low below parity was pierced but respected in the beginning of April. In the event of a breakout above the noted long-term downtrend line, further bullishness should be expected. In this event, a key upside resistance target resides around the 1.0900 price region, which represents the last major high within the current medium-term uptrend. A further breakout above that level would confirm an uptrend continuation, with immediate further resistance around the key 1.1000 price region. To the downside, dynamic support within the context of the current uptrend resides around the noted medium-term uptrend line.
James Chen, CMT
Chief Technical Strategist
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