(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.)
5/06/2009 € USD/CHF € After breaking down below a significant parallel uptrend channel in late April, price action on USD/CHF (a 4-hour chart of which is shown) has begun to form a smaller parallel downtrend channel. Currently, price is languishing around the middle of this channel. Key technical areas to focus on with this currency pair include the top of the channel for any possibility of an upside break. In this event, a strong upside resistance target resides in the 1.1500 price region. To the downside, key support resides around 1.1240, a breakdown of which could go on to break the current channel to the downside and target further support in the 1.1160 region.
James Chen, CMT
Chief Technical Strategist
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