DAILY FORECAST FOR USDCHF 2nd February 2010

Bias:     While 1.0526-53 supports I look for a resumption of gains to 1.0654-67 at least & possibly 1.0727

Daily Bullish:

The 1.0592 low broke and this has generated a choppy decline that I see having support above 1.0526. While this support holds I look for gains back above 1.0624-39 to 1.0654-67. Take care there. It is a valid resistance but I'm not so sure it will hold. More likely this rally should extend to the 1.0727 area which should hold for a move back lower...

MT Bullish:

1st February:      Momentum remains strong but has resistance at 1.0654-67, 1.0727, 1.0814-25 and 1.0955… If there is any earlier pullback from 1.0654-67 then the 1.0405-45 should support.

Daily Bearish: 

The decline from the 1.0639 high has been very messy and certainly looks corrective. Thus I feel the downside limit is at 1.0526. Thus, any stronger bearish stance would be best left until this support is broken. If seen then look for a return to 1.0475-82, 1.0428 and then the 1.0373-85 area. Any earlier rally to 1.0727 should be observed for signs of a bearish trade set up.

MT Bearish:

 1st February:    I can't see any deeper than 1.0526 now or price would then extend back to the 1.0373-85 area.

For access to my daily support & resistance levels please see the Daily Forecast page of my web site 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.