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Dollar bullish vs Swiss.

Fri, Jan 16 2009, 06:57 GMT
by James Whyte

ForexAmericas


 

In the news:

Today the Dow dipped below 8000 at mid day trading, however it was able to regain its losses and end the day marginally flat. The bounce was loosely based on a technical level. Bank of America will receive $20 billion in aid from the TARP fund. Oil traded lower today and it's poised for a further decline this month, after OPEC comments demand will drop as a global recession is more evident.

USD/CHF:

Our focus today is the Dollar Swiss chart. This pair has been trading in a 160 pip range give or take for the past week. We see a bullish trend developing in the pair, with support on a trend line coming in at 1.1144. The 61.8% Fibonacci retracement has also shown to be supporting the dollar swiss around the 1.1119 level. (Fibonacci parameters are; high of 1.1277 on Jan. 6, 2008 and a low of 1.0863 on Jan. 8, 2008). Resistance is holding at 1.1288, which is slightly above the 100% Fibonacci retracement. We believe the 1.1288 resistance level should hold for the remainder of the week, given the previous bottoms at this level back in mid October 2008. Economic events to lookout for in today’s trading for this pair are; Swiss PPI m/m (forecast -.6%), and out of the U.S Core CPI, TIC Long Term Purchases and consumer sentiment in early New York.

USDCHF


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