(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.)
5/22/2009 € USD/CHF € With dramatic dollar-weakening occurring for the entire week on most of the major currency pairs, price action on USD/CHF (a daily chart of which is shown) has hit critical dynamic support right at a significant long-term uptrend line extending from the March 2008 low. Therefore, this currency pair is currently at a very important crossroads. A clean breakdown below this key uptrend support line should target immediate further support around the key 1.0700 price region. Further downside price action breaking below that level could target major support around 1.0400. Strong upside resistance in the event of a bullish correction within the current downtrend resides around the 1.1100 price region.
James Chen, CMT
Chief Technical Strategist
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.