Forex Technical Update
The chairman of the Swiss Nation Bank (SNB), Thomas Jordan will speak in Zurich. The market will monitor his language for interest rate clues as well as gauging the strength of EUR/CHF's 1.20 Floor.
USD/CHF Daily Chart 5/14/2012 7:40 AM EDT
First, looking at the USD/CHF, we see the market pushing above the March high at 0.9334. Note the RSI reading in the daily chart pushing above 70, a sign of bullish momentum, but possibly near-term overbought condition. The CHF is basically tracking the EUR, so as EUR/USD slides, the USD/CHF climbs. The next short-term pivot is at 0.94. Above that, the 0.9550-0.9595 area is a key resistance zone.
EUR/CHF Daily Chart 5/14/2012 7:44AM EDT
The EUR/CHF has been motionless, resting at the 1.20 floor. A push to the upside is limited first to 1.0270, then the 1.2125-1.2144 resistance area. A break below 1.20 can take the away markets confidence of this floor and can push the market down to the 1.18 support pivot established 6/24/2011.
Fan Yang CMT is a trader, educator and the Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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