Forex Technical Update

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USD/CHF Daily Chart 9/11/2012 9:25APM EDT


USD/CHF continues to dig lower as the USD is softening across the board ahead of Thursday's (9/13) Fed policy meeting. The 1H chart shows the USD/CHF breaking lower, out of a descending triangle. The momentum in this time-frame remains bearish according to the RSI and the moving averages are in bearish alignment. As you see in the daily chart below, this bearish attempt is testing/cracking key support at the 0.9420 level.

The daily chart also shows that at the 0.94 handle, there is a also the 200-day SMA a commonly used moving average especially in the daily and weekly charts. If the USD/CHF extends below 0.94 in the declining channel seen in the daily chart time-frame, the focus will be on the 0.93 level, where price is likely to test a rising trendline going back to the 0.8930 2012-low from 2/27.

USD/CHF Daily Chart 9/11/2012 9:28APM 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.