Forex Technical Update
After a throwback that respected a previously broken counter-trend resistance as support, the USD/CHF has anchored itself into somewhat of an expanding channel to the upside. Price action has tagged this new channel support several times and respected it. The market is now looking up at critical resistance at 0.9325, the high in November.
The weekly chart shows a possible scenario if the USD/CHF breaks above 0.9325. Taking a measured move, not of the previous upswing, but of the one before that, we target a resistance area of the 100 week simple moving average, and pivot from March 2008, which was the 2008-low. This is also between 50% and 61.8% retracement of the 1.1730-0.7065 downswing that started May 2010 and ended August 2011.
In the case the market fails to break above 0.9325, a break and close back below 0.9200 in the 4H chart could indicate further sideways action.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.