Forex Technical Update

USD/CHF Daily Chart 7/9/2012 8:15AMEDT


The USD/CHF daily chart is giving different bullish continuation signals. The most important one, price action shows a break into new highs for 2012 after Friday's (7/6) disappointing NFP gave the USD a boost as a safe haven currency. The USD/CHF rallied to almost 0.98 before stalling.

The RSI broke above 60 after failing to push below 40. This shows maintenance and possible continuation of the bullish momentum that was established in May when the RSI pushed above 70.

The moving averages are also re-aligned to the bullish scenario with the 200-day SMA at the bottom, going up to 8-day SMA closest to the ascending price action.

Finally the market can hold above 0.9675, we should be developing a bullish impulse wave and continue the bullish outlook. A break below 0.9590 however can be an indication of failed bullish continuation, and signals further consolidation and possible reversal.

The weekly chart shows a market that has been reverting back toward the 200-week SMA after finding support at 0.7066 in August 2011. Therefore, the upside risk for now is limited to 1.0065, confluence of the 200-SMA and a previous resistance pivot from November 2010.

Also note that 61.8% retracement of the 1.1725 to 0.7066 swing is at 0.9945. Between these two targets, 0.9945 and 1.0065, we have the 1.00 parity level to monitor as a psychological barrier.

USD/CHF Daily Chart 7/9/2012 8:23AMEDT


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.