USD/CHF Cracking Range Resistance

\ 9:42 AM EDT \ November 6th, 2012
Forex Technical Update

Previous: USD/CHF From Trendline Breakout to Range Resistance (11/4)

USD/CHF Daily Chart 11/6/2012 9:35AM EST

USD/cHF 11/6/2012 daily chart

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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

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