Forex Technical Update
USD/CHF Daily Chart 7/10/2012 8:15AMEDT
The 1H USD/CHF chart shows that it has been consolidating in a flag pattern this week after a rally last Friday (7/6). Note that the RSI came down to 40 and remained above it, reflecting maintenance of the bullish momentum. If the RSI now pushes back above 60, price is likely in bullish continuation, especially if the reading can tag 70 again.
If we do extend the current rally into newer 2012 highs, we should start monitoring for resistance factors at 0.9945, 61.8% retracement of the 1.1725-0.7066 bear run, seen in the weekly chart. Above that, 1.0065 is a previous resistance pivot, the projected channel resistance, and the 200-week simple moving average. Between these two goals, the parity level (1.0) might also provide a psychological barrier.
USD/CHF Weekly Chart 7/10/2012 8:18AMEDT
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.
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