DAILY FORECAST FOR USDCHF 24th May 2010

 @ibtimes on May 23 2010 9:55 PM

Price:   1.1491

Bias:    Mixed - waiting for breaks with a break above 1.1585 seeing 1.1619-43

Daily Outlook:

Price has remained in the 1.1452-1.1585 range and this still represents the breaks required for a stronger directional move. As long as EURUSD does move lower then I feel we shall finally have an opportunity to see the additional highs I have been considering. Above 1.1512 will assist back to 1.1542 and 1.1585 with follow-through anticipated to 1.1619 minimum and potentially 1.1643-66. Take care as I feel this should provide the top. Note next resistance at 1.1691 and 1.1741-74.

Any earlier loss of 1.1450 would appear to signal a retest of the 1.1418 low directly and probably breach for 1.1315-40 and max 1.1267-78. This should cause a correction higher. Note next support at 1.1227-40 and 1.1182.

Medium Term Outlook:

21st May:      The 1.1666 target may still be possible but it's touch and go - work with breaks.

The only risk I see is direct losses which break below 1.1418-52 which would trigger those losses directly.

For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are available on the Daily Forecast page of my web site in the Trader Package review. (+95 pips)

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