(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.)

7/22/2009 € USD/CHF € Price action on USD/CHF, a daily chart of which is shown, after breaking down below a key uptrend channel, made a quick pullback up to the point of breakdown, and is currently in consolidation right under the channel. With a continued bearish bias off the breakdown, which would be confirmed on a further strong break below the 1.0620 low, the next major support target resides in the key 1.0400 support/resistance price region. On any fundamentally-driven break back above the current 1.0700 resistance, which could lead price to move back up into the channel, intermediate upside resistance resides around the 1.0800 price region.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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