Forex Technical Analysis (2010/06/22) USD/CHF Tentatively Bounces Off 1.1000 Support
(Please click on the forex chart thumbnail to enlarge)
6/22/2010 Forex Technical Analysis (FXpath.com) – USD/CHF, a daily chart of which is shown, after bouncing up off key support almost precisely at 1.1000 on Monday (6/21/2010), descended yet again on Tuesday (6/22/2010) to re-approach that support level once again. This occurs after price fell steeply from its 13-month high above 1.1700 in early June to further break down below a key uptrend support line extending from the mid-April low. Now that price has reached down to 1.1000 support once again, the pair is at a critical juncture. A further downside break below 1.1000, which would continue the recent steep bearishness, should meet immediate further support in the key 1.0900 price region. And immediately below that level, in the event of yet a further breakdown below 1.0900, resides an important uptrend support line extending from the late November low. In the event that price makes a pronounced bounce up off the current support, the key upside resistance level to watch continues to reside in the 1.1250 price region.
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
James Chen, CTA, CMT (bio)
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