Short-Term Indicators Turning Up for USD/CHF Currency Pair
11/11/2010 12:01 am EST
Although the pair continues to seek for further corrective recovery, its overall medium- to long-term bearishness is still dominating. We believe if further strength is seen, its falling trend line originating from the 1.1671 level and presently at 0.9844 could be targeted.
The pair should face a stiff opposition there and likely collapse, triggering weakness in line with its broader downtrend. However, for the pair to resume its corrective recovery higher started from the 0.9462 level, it needs to break and hold above its falling trend line and the 0.9970 level.
This should create scope for more strength toward the September 17 high at 1.0066 and possibly toward the September 17 high at 1.0182. Alternatively, with its primary trend pointing lower, USD/CHF could even return to its year-to-date low at 0.9462 and trigger further bearishness towards the 0.9350 level and then the 0.9300 level.
By Mohammed Isah of FXTechStrategy.com