USDCHF dropped sharply from 1.0898

Franco Shao from ForexCycle.com at 02/22/10

USDCHF dropped sharply from 1.0898 last week, suggesting that a short term cycle top had been formed on 4-hour chart. Range trading between 1.0608 and 1.0898 is expected in a couple of days. However, the price action from 1.0794 is treated as consolidation of uptrend from 1.0132, one more rise towards 1.1000 is still possible. Key support is at 1.0608, below this level will indicate that the upward movement from 1.0132 has completed at 1.0898 already, then the following pullback could take price back to 1.0500 zone.