USD/CHF Struggles to Climb Higher

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USD/CHF Daily Chart

5/22/2012 – Price action on USD/CHF (a daily chart of which is shown), as of 5/22/2012, has risen within the last couple of weeks to breakout above both a large triangle consolidation pattern extending from the beginning of the year as well as the key 0.9300 support/resistance level. Currently having come off its post-breakout high just shy of 0.9500, the pair is still looking to climb towards the next major resistance target in the 0.9600 price region, which price closely approached in early January. Key support currently resides around the previous resistance level of 0.9300. The major bullish event to watch for would be a breakout above 0.9600, in which case a bullish trend may once again begin targeting parity (1.0000) to the upside.

(Chart courtesy of FXDD – Metatrader. Uptrend lines in green, downtrend lines in red, horizontal support/resistance lines in black, Fibonacci retracements in purple, 200-period simple moving average in blue, 100-period simple moving average in brown.)

Author: James Chen

James Chen, Director of Technical Research and Education at FXDD, is a highly-experienced and accomplished trader, educator, and author. A Chartered Market Technician and registered Commodity Trading Advisor, James has published multiple books on trading, including Essentials of Foreign Exchange Trading (John Wiley & Sons, 2009), Essentials of Technical Analysis for Financial Markets (John Wiley & Sons, 2010), and the instructional DVD set, High-Probability Trend Following in the Forex Market (FX Street, 2010). Having been a currency trader and market strategist for many years, Mr. Chen also contributes daily and intraday technical analysis to top-tier financial media including Reuters, Bloomberg, Dow Jones and Forbes; is a frequent speaker at key trading conferences; and has authored numerous articles on currency trading strategies and technical analysis for major financial publications.

2012-05-22T23:59:40+0000

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Technical Analysis|USD/CHF

James Chen

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