Forex Technical Update
USD/CHF Daily Chart 9/7/2012 10:40APM EDT
Following up with the previous USD/CHF update, we see that after some more twisting and turning, it eventually fell further to the support zone between 0.9420-0.9450 seen in the daily chart. The greenback is being dragged by poor NFP data, which gives the FOMC more reason to implement QE3 this year. We shall see if this is still the case next week during the policy meeting on Thursday (9/13).
The 4H chart shows that the USD/CHF has been keeping the bearish momentum, and this is simply another push in the direction of a persistent trend since topping late July at 0.9971. As it leaves the previous consolidation zone, the 0.95-0.9525 support pivot area will be seen as a possible resistance area for a pullback.
If the FOMC does implement QE3, or confirms expectations that it will, the USD/CHF has the next support to focus on, near the 0.93 handle, a rising trendline that goes back to the February and 2012 low at 0.8930 (refer to daily chart). Note that this will also clear 61.8% retracement of the rally from 0.8930 to 0.9971.
USD/CHF 4H Chart 9/7/2012 10:45AM EDT
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.