(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; divergence in white; 50-period simple moving average in light blue.)
4/16/2009 € USD/CHF € Price action on USD/CHF, as shown on the displayed 4-hour chart, has formed a well-defined parallel uptrend channel that has been in place since late March. Throughout the life of this gradually up-sloped channel, price has made clear, tradable breaks of intra-channel trendlines. Currently, price on this pair is right around just such a juncture, with an intra-channel downtrend resistance line to the upside and an intra-channel uptrend support line to the downside. An upside break would be a more significant technical event, as the channel is bullish and the natural target at this point is the top of the channel. Therefore, any substantial upside break of the intra-channel downtrend resistance line should target dynamic resistance around the upper border of the parallel uptrend channel. The current intra-channel uptrend line should act as support for the pair, a breakdown of which should target the bottom border of the parallel channel once again.
James Chen, CMT
Chief Technical Strategist
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