USDCHF broke above 1.0218 key resistance

Franco Shao from ForexCycle.com at 01/15/10

 

USDCHF broke above 1.0218 key resistance and formed a short term cycle bottom at 1.0132 level on 4-hour chart. Rise towards the upper border of the falling price channel is expected later today, and a clear break above the channel resistance will indicate that the downtrend from 1.0507 has completed, then another rise to 1.0800 could be seen. As long as the channel resistance holds, the price action from 1.0132 is treated as consolidation of downtrend and one more fall below 1.0132 is still possible after consolidation.