USD/CHF Technicals – Upside Targets for the Bullish Continuation Scenario
Forex Technical Update
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USD/CHF Trading Toward Key Resistance at 0.9325 (12/7)
USD/CHF
The USD/CHF breaks and clears the October high at
0.9320 and is trading near 50% retracement (of
1.1730-0.7065 swing) just below
0.94. The RSI reading in the daily chart shows bullish
continuation as it has failed to sustain a break below 40, and is climbing back above 60. A push above 0.94, and a break of the RSI above 70 confirms the bullish
continuation scenario. A swing projection is seen in the weekly chart.
Using a wave 5 = wave 1 projection, the current swing targets roughly
0.97. Before that, we have a pivot established March 2008 as
support, and now to be tested as
resistance at about
0.9670. The weekly RSI reading is attempting to break above 60, which would reflect a loss of bearish momentum. Above
0.97,the next important
resistance is at the 0.9950 (61.8% retracement) – 1.0 parity level. Above parity, the maximum bullish outlook for the current
rally that started from
0.7065, is the
1.0730 area, near the 78.6% retracement and reinforced by the 200 week SMA. Before that the 1.0 parity level can be seen as a possible level of
resistance as well.
Fan Yang CMT is the Chief Technical Strategist
FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.http://www.fxtimes.com/
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