USD/CHF Holding Above 200-Day SMA

\ 4:44 PM EST \ November 7th, 2012
Forex Technical Update

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USD/CHF Daily Chart 11/7/2012 4:25PM EST

USD/cHF 11/7/2012 daily chart

200-day SMA: The USD/CHF recenlyt broke above a range resistance at 0.9430. During the 11/7 session, it fell back under 0.94 to 0.9380, near the 200-day SMA, but bounced back up to end the day above 0.9430. This choppy session is showing respect for the 200-day SMA as support, another sign of bullish intent. As the market holds above the 200-day SMA and rallies, the focus is on 0.95 in the very short-term, which was a previous support pivot, and 38.2% retracement of the 0.9971-0.9213 decline.

The next level to monitor is just under 0.96, at 50% retracement and a more aggressive retracement target of 61.8% retracement is near 0.9680. A range breakout project is between the 50% and 61.8% retracement levels.

A bullish outlook at least in the short-term should push the daily RSI above 60, which reflects loss of the bearish momentum from the July-October decline.

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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