(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; downtrend lines in red; 50-period simple moving average in light blue.)
6/11/2008 – USD/CHF – Within the context of the long-term downtrend, price on the USD/CHF 4-hour chart, as shown, has been forming a short-term parallel downtrend channel since April of this year. Within this channel, price has just made a pronounced turn down near resistance. This turn is supported by oscillators like the displayed Stochastics, which have made an equally pronounced downturn from extremely overbought. In the event of continued momentum to the downside, the next major support resides around 1.0275, which is a significant previous support/resistance region. Further down, clear support resides at the bottom of the parallel downtrend channel.
Chief Technical Analyst
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.