USD/CHF (daily chart) as of Tuesday (9/20/2011) has once again risen to re-test key resistance around the 0.8900 price region, a level that was just tested and essentially respected early last week. After last week’s resistance test, price pulled back slightly in its trend-breaking bullishness, to the 0.8645 price region, before turning back up. Now that price has re-tested key resistance, a strong break to the upside, which would continue the bullish breakout momentum and add further confirmation to an overall change in trend for the pair, could go on to target further upside around the 0.9300 resistance region. A turn back to the downside from resistance, which would further strengthen this resistance region, could target strong downside support once again around the 0.8550 price region.

 

(Click on chart to enlarge. Forex chart key: price on 1st pane, Stochastics 14,3,3 on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average (SMA) in orange; 100-period SMA in brown; 200-period SMA in dark blue; Fibonacci levels in magenta.)

 

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

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