(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; chart patterns in white; 50-period simple moving average in light blue.)
6/25/2009 € USD/CHF € Price action on USD/CHF, a 4-hour chart of which is shown, has once again reached the top of a slightly-angled parallel uptrend channel (in green) with two primary touches on the bottom and three primary touches on the top. Currently languishing near the top of the channel after recent substantial dollar strengthening, this pair is also exhibiting clear price-oscillator divergence (in white, where price made a higher high while Stochastics, in this case, made a lower high). This could suggest a possible loss of upward momentum near the top of the channel. If this becomes the case, a key intermediate support target to the downside resides around 1.0760. In the event of a breakout to the upside of the current channel, a further key resistance target resides around the 1.1160 price region.
James Chen, CMT
Chief Technical Strategist
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