Daily Technical Outlook & Trading USD/CHF: May 20, 2015

   DAILY USD/CHF TECHNICAL OUTLOOK
Last Update At 19 May 2015     23:55GMT

Trend Daily Chart
Sideways

Daily Indicators
Turning up

21 HR EMA
0.9339

55 HR EMA
0.9280

Trend Hourly Chart
Up

Hourly Indicators
Easing fm o/s

13 HR RSI
68

14 HR DMI
+ve

Daily Analysis
Consolidation with upside bias

Resistance
0.9480 - Apr 03 low (now res)
0.9414 - 05 May high
0.9385 - Y'day's high

Support
0.9300 - Hourly sup
0.9272 - Tue's Asian high (now sup)
0.9243 - Y'day's low

. USD/CHF - 0.9370... Despite trading sideways in Asia n a brief retreat to 0.9243 at European open, selloff in eur/usd helped the buck surged to 0.9362 b4 reterating to 0.9300 on weakness in eur/chf cross. Release of upbeat US data sent price rallying to selloff high of 0.9379 in NY morning, then later 0.9385.

. Looking at the bigger picutre, despite dlr's early decline fm Mar's high at 1.0129 to May's fresh 3-month trough at 0.9072, y'day's rally abv last week's high at 0.9359 confirms aforesaid fall has made a low there n consolidation with upside bias is seen for a retracement of this entire fall to 0.9476 (38.2% r), a daily close abv 0.9480 (prev. sup, now res) wud bode well for further headway twd 0.9600 in late May/early Jun, this is a 'natural' 50% r of the decline fm 1.0129-0.9072. Therefore, buying dlr on dips in anticipation of upmove to indicated targets is favoured n only below 0.9245 wud signal a temporary high is made n risk weakness to 0.9192 (61.8% r of 0.9072-0.9785).

. Today, as current price is trading well abv the 21-hr n 55-hr emas, suggesting buying dlr on dips is recommended, however, res at 0.9476-0.9480 shud hold ahead of release of FOMC minutes later in NY afternoon.