Swiss Franc (CHF) Technical Major Currencies (2010-01-21)

The dollar versus swissy continued pushing to the upside breaching pivotal resistance levels while nearing resistance levels in forming the most vital medium and short term direction for the pair. The first of these levels is at 1.0505, forming the neckline for the predicted bullish technical pattern, which could push the pair towards a more bullish direction followed by 1.0595; representing the retested breached support on the daily chart, where it was achieved last September. We expect a bullish intraday direction building a base on 1.0430 and retesting the strength of 1.0505 to determine the short term direction. Keep in mind that 1.0390 must remain intact for this expected bullish direction to prevail.

The trading range for today is among the key support at 1.0235 and the key resistance at 1.0595.

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

Weekly ReportPrevious ReportSupport1.03601.03151.02701.02201.0175Resistance1.04051.04851.05651.06051.0690RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.0430 targeting 1.0505 and stop loss below 1.0390, might be appropriate.