FXstreet.com (Barcelona) - The USD/CHF's yesterday rejection from 1.0400 resistance has continued further today after trading in a narrow range between 1.0330 and 1.0340, MA55 level in hourly chart, and breaking down to fall 40 pips in the last hour to test 1.0300 ahead the Swiss September KOF leading indicator.
KOF leading indicator is expected to rise further in the September reading to 0.33 pts from -0.04 pts in August after three months increases from bottom of -1.85 posted in May 2009.
The ecPulse.com analysis team comments: The Dollar versus Swissie pair reached the key resistance for the minor bullish channel at 1.0400, before reversing back to the downside within the channel to near the support level at1.0320, which intersects with the 50 MA, seen in the image above. All these signs, in addition to the stochastic indicator near an oversold area makes us believe the pair is to incline on the intraday basis; targeting 1.0455 noting the possibility of the formation of a bullish technical pattern with a neckline at 1.0390, where we can picture the bullish scenario, after the pair reverses from 1.0445 to retest the neckline before targeting 1.0550. This overview remains valid as far as 1.0240 is intact.