Previous: USD/CHF Cracking Range Resistance (11/6)
USD/CHF Daily Chart 11/7/2012 4:25PM EST
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.
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