New York
London
Tokyo
Chart Of The Day | Forex Chart Analysis | James Chen
Join James Chen, FX Solutions\' Lead Technical Analyst, each day as he provides commentary for a given currency pair chart setup.

USDCHF | Bullish Retracement | June 20, 2011

USDCHF Chart June 20, 2011
(Chart key: price on 1st pane, Stochastics on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average in orange; 100-period simple moving average in brown; 200-period simple moving average in dark blue; Fibonacci levels in magenta.)

USD/CHF (daily chart) as of Monday (6/20/2011) has completed yet another bullish retracement within the context of a steep bearish trend that has been in place for over a year, since the June 2010 1.1730 area high. This retracement brought price action back up to the key 0.8550 resistance (prior support) before turning back down.

Prior to this bullish retracement, price had reached its downside target around 0.8325 (the new all-time low), which represented the 161.8% Fibonacci extension of the last bullish retracement that occurred in the first half of May. In the event of a breakdown below that all-time low, which would confirm a downtrend continuation, bearish price momentum could potentially begin targeting key psychological support around the 0.8000 round number.

To the upside, the noted 0.8550 level should continue to serve as resistance within the context of the current long-standing bearish trend.

Tagged as: , ,

SocialTwist Tell-a-Friend

Leave a Response

Trading Metro
Disclaimer

Before diving into the legalese below, use your common sense when trading. Rely on yourself to define trade execution, don't trade with money you cannot afford to lose, and know the risks of trading. Be responsible, be honest, and use common sense.

Online trading, especially that on margin carries a high level of risk and may not be suitable for all investors. Opinions expressed at Trading Metro are those of the independent authors and do not necessarily represent the opinion of Trading Metro. Trading Metro has not verified the accuracy of any claim or statement made by any independent author. It's your responsibility to ensure the veracity of information presented.

Any solutions, opinions, news, research, analyses, prices or other information contained on this website, by Trading Metro, its employees, partners or contributors, is provided as general market commentary and tools, and does not constitute investment advice. Trading Metro will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Information on Trading Metro is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on Trading Metro is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy and our Privacy Notice.

Feedback Form