(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; 50-period simple moving average in light blue.)
4/24/2009 € USD/CHF € Price action on USD/CHF, a daily chart of which is shown, has once again reached the bottom of a short-term parallel uptrend channel that has been in place since the last short-term parallel uptrend channel was broken to the downside in mid-March. This past week has been substantially bearish for this pair since the top of the current channel was reached on Monday. Price currently appears on the verge of breaking down below the channel, in which case a major support target to the downside resides around the key 1.1100 price region. Conversely, a trendline bounce would be strongly confirmed on a clear breakout above 1.1500, in which case the top of the current channel should serve as a significant upside resistance target.
James Chen, CMT
Chief Technical Strategist
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