Forex Technical Update

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USD/CHF 4H Chart 5/2/2012 9:50AM EDT

USD/CHF

The 4H USD/CHF chart shows a market breaking above a channel. The break was strong, and clears the moving averages periods 200 down to 8. As get into the 5/2 US session the market is stalling around 0.9150. To the downside, the 0.91 area is key support if the market is to stay short to medium term bullish. Otherwise, we need more clues for direction.

USD/CHF Daily chart 5/2/2012

USD/CHF

The bullish outlook first sees a declining trendline near 0.92. Above that a resistance pivot is at 0.9250.

The maximum bullish outlook for now should be limited to 0.9330, which is a recent range resistance seen in the daily chart. In the daily chart the outer range is between 0.9330 and 0.8930, while the inner range is between 0.9250 and 0.90. The RSI being stuck between 60 and 40 reflects a consolidating momentum.

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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.

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.