USD/CHF Daily Chart 11/6/2012 9:35AM EST
Range Resistance Cracked: The USD/CHF was seen breaking a declining trendline in the previous update, as well as testing the range resistance around 0.9430. It has extended further to 0.9455 in the 11/6 session. still price action is not convincing yet, and the daily RSI reading is at 60, below which the bearish momentum is still maintained.
A close above 0.9450 for the 11/6 session could be convincing for the upside. This opens up the 0.95, 38.2% retracement, then the 0.9592-0.96, 50% retracement, and more aggressively the 0.9680, 61.87% retracement, and previous pivot.
Failure: I consider the central pivot to be around 0.9330. A break below this refocuses the USD/CHF to the support area of the recent range, and shelves the bullish breakout scenario. A break below short-term pivot of 0.9280 however makes the bullish outlook unclear. A push below 0.9330 can introduce a bearish outlook.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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