USD/CHF Daily Chart 12/14/2012 8:05AM EST
Consolidation range: The daily USD/CHF chart shows a market that has been in a sideways consolidation since September. The range is roughly between the 0.9511 resistance (though most of the highs were around 0.94) and the 0.9214 support. The RSI and moving averages show a non-direction mode and momentum, although price action was bearish since July before the consolidation started in September.
Support tested: As we start the 12/14 US session, the pair is testing the 0.9214 support. The market is showing some near-term acknowledgement of this support as we see a small bounce in the 1H chart with reversal type candles. We also see an intra-session, near-term consolidation. Perhaps in the 12/14 US session, a break from this range will clue us in on whether the market is going for a Friday-correction off this support? OR whether the USD/CHF still wants to pressure this support.
Breakout scenarios: A break to the upside suggests a bit of reversion. A possible short-term target for the reversion/correction scenario is the 0.93 handle. A break below 0.9219, following through 0.92 opens up the 0.90 psychological handle and the 2012-low at 0.8930.
USD/CHF 1H Chart 12/14/2012 8:10AM EST
