Chart of the Day – USD/CHF
James Chen from FX Solutions at 12/11/09
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
12/11/2009 – USD/CHF – Price action on USD/CHF, a 4-hour chart of which is shown, broke out earlier this month above a downtrend resistance line extending from late July. After that trend break, the bullishness continued with a pennant pattern and breakout, and then an immediate flag-like consolidation pattern. A clean breakout above this flag occurred on Friday (12/11/2009) morning, establishing a new 2-month high for the pair. Having reached and surpassed resistance around the 1.0350 price region, continued dollar bullishness could target further key resistance in the 1.0550 support/resistance region. Tentative downside support within the context of the current bullishness resides around the 1.0300 price region, which represents the approximate top of the noted flag formation.
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