USD/CHF Testing Resistance Range Highs Following Trend Line Breakout
- The “Swissie” is testing recent range highs around 0.9440 after breaking above the 200 day SMA (Simple Moving Average) on Friday. This comes as the USD/CHF has managed to hold above the previous resistance trend line which has subsequently acted as support last week.
- If price can sustain the current levels, today could be the highest daily timeframe close since early September.
- Further to this resistance area, the key potential “trouble areas” we see on a move higher for the USD/CHF include the following:
- The 0.9500 psychological round number, which has confluence with the 38.2% Fibonacci retrace of the last main move lower 0.9970 > 0.9213; this is a level which gave support on the way down and could potentially see resistance.
- The 61.8% retrace is aligned with previous support around 0.9665, this has also proved to be a price pivot when looking further back on the charts.
- Potential support on any move lower includes the following:
- The 200 period daily SMA around 0.9385 which is aligned with the 26/10 daily high.
- A minor price pivot zone around 0.9280.
- The 14/10/12 daily low around 0.9214 which is the lowest level seen since around June.
- Price action on the EURUSD around 1.2830 is likewise seen as key in terms of gaining a directional bias for the dollar versus other major currencies.
USDCHF Daily Chart – 5th November 2012
Related terms: Forex,Dollar/Swiss Franc Technical Analysis, Forecast, Report