Forex: USD/CHF bounces at 1.0445 and tests back 1.0490

 @ibtimes
on January 27 2010 11:16 AM

FXstreet.com (Barcelona) - After finding support at 1.0445 in the early American morning, coming from its 60 pips decline from 5-week high at 1.0503, the USD/CHF has bounced back to test 1.0490 level. Currently the pair is trading around 1.0470/80, 0.15% above today's opening price action at 1.0463.

In the daily chart, USD/CHF is recovering from Jan 25 low at 1.0367, pair is testing the 1.0500/10 tough zone, maximums since September 2009. 4-month high is 1.0507, reached December 17.

The bullish trend is loosing its steam and the pair seems to consolidate around the 1.0470 level. Says Greg Holden, analyst at ForexYard, The daily chart's RSI is already floating in an overbought territory suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. Going short with tight stops might be a wise choice.

The USD/CHF is retreating from 1.0500 area tested early today, hourly charts remain bullish at this point with price holding above 20 SMA, that's losing upside strength. Affirms Valeria Bednarik, FXstreet.com collaborator, A bit choppy, pair should hold above 1.0440 support zone to show further chances of rising today.

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