(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.)
6/28/2010 - USD/CHF - Price action on USD/CHF, a daily chart of which is shown, has displayed strong bearishness in the last three weeks that highlights the recent dramatic strengthening of the Swiss franc. As of Monday (6/28/2010), price action has established a new 8-week low, and has descended all the way back down to the region of a key uptrend support line extending from the November 2009 low below parity. This trendline touch occurs after price dropped successively below several important support levels within the past three weeks, including 1.1400, 1.1250, 1.1000, and 1.0900. The drop was strong and swift, and reflects the recent Swiss franc strengthening that can also be seen in the current all-time low hit in EUR/CHF. In the event of further bearishness in USD/CHF that breaks down and closes significantly below the noted uptrend support line, bearish momentum in this currency pair could potentially target further key downside support levels in the 1.0650 and then 1.0500 price regions.
James Chen, CMTChief Technical StrategistFX Solutions
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