Monday December 28, 2009 - 17:25:10 GMT
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USD/CHF Stalking 2nd Retracement Leg - Daily Technical Update - 12/28/09
Daily Technical Update USD/CHF Stalking 2nd Retracement Leg
- Daily: The USD/CHF, like many other greenback
crosses is in retracement. US Dollar strength is being consolidated
during the holidays ahead of the New Year. (Refer to Daily Video Technical Update 12.23.2009).
- Support for this retracement is at the 1.0200 area. If the market
supports the pair here, coincident with the 50-Day MA that it broke in
the beginning of December as a bullish signal, a further rally is
likely. The swing projection is the 1.0750 area.
- 4H: Back to stalking the retracement. Unlike the
EUR/USD, the USD/CHF seem to be in its second leg. It already broke
below its 50-MA in the 4H time-frame. The market is stalled at the
1.0350 area, but looks to continue the decline ahead of the US session.
If it breaks below 1.0300, this will likely materialize.
- This would offer a test of the 200-MA at the 1.0200 area. This
would also be a completion of a Gartley pattern, and suggests bullish
outlook if the market bottoms.
- One thing to caution is the marketâ€™s manner of decline in the
upcoming session. Also, a rally from 1.0200 has a short-term target at
1.0380 (short-term powerline). A break of that strengthens the bullish
case in for the long-term, but only a break of 1.0500 can confirm.
Meanwhile, we need to observe the 4H, and maybe 1H time-frame to stalk
the manner of the current retracement.
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
acting as a counterparty to its clientsâ€™ transactions and as a result,
CMSâ€™ interests may be in conflict with its clients. Since CMS acts as
the buyer or seller in the transaction one should carefully evaluate
any trade recommendation provided by CMS or any of its solicitors.
Foreign currency trading involves a substantial risk of loss and may
not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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