USD/CHF 1.05 Support Holds
- Daily: The USD/CHF completed a rounded top formation at the end of a bearish Gartley and the previous post was stalking its decline. (Refer to Daily Technical Update 3.15.2010 USD/CHF).
- The market is now testing an important area. The 1.05 powerline is an important level to break below for a bearish market. A break spells another attempt to drop to parity level.
- However the market is oversold and crossing over. For the short-term, there will be a bullish attempt.
- If the market avoids paring in the US session, we may have a rally that should go back towards 1.07 area. Let’s take a look at the 4H chart.
- 4H: The short-term look at the USD/CHF shows a bullish divergence with the stochastic.
- Looking at the orientations of the MAs, we see a bullish mode in the Daily, and a bearish mode in the 4H. The weekly chart shows a bearish mode going back to 2002.
- So although the 1.05 area has not cracked. Continue to anticipate attempts at cracking it. If it does, the projection could be conservatively the 1.00 area, and aggressively the 0.98 area.
- On the otherhand a break above 1.07 is a very strong bullish signal.
- I would therefore keep my eye on this pair near these areas, 1.07 and 1.05.
