(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.)
8/18/2009 € USD/CHF € Within the context of a prolonged horizontal trading range on USD/CHF, a daily chart of which is shown, price has formed a small triangle consolidation. Any substantial break of this triangle should present a potential opportunity within the current trading range. In the event of a strong breakout to the upside of the triangle, a clear resistance target resides in the 1.1000 support/resistance price region, which represents the top border of the range. In the event of a strong breakdown below the triangle, the initial downside support target resides around the 1.0600 price region, which represents the bottom border of the range. Further downside support in the event of a breakdown below the current trading range resides in the 1.0400 support/resistance price region.
James Chen, CMT
Chief Technical Strategist
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