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Daily Forex Technical Report − USD/CHF

Thu, Jan 29 2009, 08:39 GMT
by ActionForex.com Team

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USD/CHF rebounds from channel support and break of 1.1471 minor resistance indicates that pull back from 1.1714 has completed. Intraday bias is flipped back to the upside. Break of 1.1714 will indicate that rise from 1.0366 has resumed for 1.2248/96 resistance zone. On the downside, however, below 1.1313 will suggest that fall from 1.1714 is still in progress. More importantly, this will argue that rebound from 1.0366 has completed and deeper decline could be seen to 1.0864 cluster support next.

In the bigger picture, the rise from 1.0366 was admittedly stronger than expected and dampened the medium term bearish case. Favors are shifted to the case that medium term rise has indeed topped at 1.2248 orthodox top rather than 1.2296. In other words, three wave structure of the fall from 1.2258 to 1.0366 argues that it's merely a correction in the medium term up trend. Rise from 1.0366 should now extend to retest 1.2248/2296. Nevertheless, decisive break of the resistance zone is needed to confirm resumption of medium term rise from 0.9634. Otherwise, some large scale consolidation could be seen, with risk of another test of 1.0366 before up trend resumption.


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