Swiss Franc (CHF) Technical Major Currencies (2010-01-11)

The dollar versus swissy is moving according to the expected scenario in last week's report, insuring the breach of support levels that forced the pair to trade within a narrow range. In addition, we notice that through the image above we can see bearish technical patterns forming and therefore pushing the pair to strongly move to the downside. Thus, we expect a bearish direction on the short term for this week, where it is heading towards 1.0055 initially and then will descend towards 0.9915. The expected bearish direction will prevail if we do not witness a daily closing above 1.0380.

The trading range for today is among the key support at 0.9870 and the key resistance at 1.0505.

The general trend is to the downside as far as 1.1225 remains intact with targets at 0.9600.

Previous day ReportSupport1.01401.00550.99600.99150.9840Resistance1.02801.03801.04501.05051.0610RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.0280 targeting 1.0055 and stop loss above 1.0380, might be appropriate.