WEEKLY USD/CHF TECHNICAL OUTLOOK
Last Update At 26 Jan 2015 00:29GMT
Trend Daily Chart
Down
Daily Indicators
Falling
21 HR EMA
0.8766
55 HR EMA
0.8728
Trend Hourly Chart
Near term up
Hourly Indicators
Neutral
13 HR RSI
57
14 HR DMI
+ve
Daily Analysis
Consolidation with upside bias
Resistance
0.9000 - Psychological
0.8903 - 70.7% r of 0.9131-0.8352
0.8838 - Last Tue's high
Support
0.8751 - Last Thur's high
0.8682 - Last Fri's low
0.8500 - Wed's low
. USD/CHF - 0.8783.. Dlr went through 'roller-coaster' week last week. Price rebounded to 0.8838 on Tue due to renewed cross-buying of chf, however, decline in eur/usd pressured the pair to 0.8500 Wed b4 rising again due to resumption of downtrend in eur/usd, dlr later climbed back to 0.8820 on Fri.
. Looking at the bigger picture, despite dlr's free fall fm Jan's fresh 2-1/2 year peak of 1.0240 to a 4-month trough of 0.7360 after SNB surprised the market by unpegging the 1.20 franc cap, subsequent swift bounce has left a spike bottom formation on the daily chart, suggesting a major low has been formed. As mentioned in recent updates, although market may test dlr's downside, as long as 0.8326 sup holds, choppy sideways trading is seen b4 prospect of another rise. A weekly close abv 0.9131 (prev. reaction high) wud add credence to abv view n yield further gain to 0.9396 (being 70.7% r of 1.0240-0.7360). On the downside, only below 0.8326 wud dampen bullish view on dlr n may risk weakness twd 0.8000.
. Today, despite euro's selloff to fresh 11-year low ahead of Asian open, decline in eur/chf limited dlr's gain to 0.8824, suggesting choppy sideways move is in store. We're standing aside initially b4 giving a recommendation.
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