ForexPros Daily Analysis July 13, 2011
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The reversal in the CHF is working perfectly
The reversal in the Swiss, which I analyzed here, last week, is working perfectly. In spite of the strengthening of the USD against most of the major currencies, the Swiss is keeping its power, and it would have got even stronger if the US stock markets did not slide.
The reversal idea was brought up when the Swiss traded at 83.5, and the main goal was getting down to the historical low at 82.70, which the CHF eventually did. The question now is whether going in under that support or wait for correction up and another reversal. There are several approaches for this kind of situation, but I believe that it is dangerous to go into the market in extreme points, so you have to be careful.
Those of you who want enter the market in spite of the above, have to constantly monitor the trade, and choose an appropriate size for the current trading conditions. This pair has never traded under the support at 82.7, so it is difficult to point out a significant support under it. Therefore, the round number of 81.0 might be the level in which buyers will go in again.
*The reversal in the GBP/CHF from last week works even better and gained more than 200 pips so far.
Forex Trading Analysis written by Bastian Rubben for ForexPros. For more information about technical analysis visit ForexPros.
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