Friday May 14, 2010 - 21:02:28 GMT
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Fxtimes: Daily Technical Update USD/CHF Breaking 1.123 Resistance
Daily Technical Update
May 14, 2010
USD/CHF Breaking 1.123 Resistance.
- Daily: The USD/CHF is retesting, and breaking previous weekâ€™s high at the 1.23 area. Thereâ€™s resistance here, and the RSI shows the market in overbought zone, although still in a healthy uptrend.
- If the market closes above 1.23, and survives a throwback, it can go to the 1.1550 area.
- Weekly: The weekly chart shows that the 1.23 resistance is more than a minor top. The SMA 200 and the 61.8% retracement level both reside here. The pair showed respect for this area in the previous week, after a 200-pip rejection. This week that is ending, brought the pair back up, â€śchewing upâ€ť the tail.
- Next week will be very telling.
- The RSI suggets you have to juggle with two scenarios. Overbought and the market reacts with resistance against a significant break above 1.23. Or, the momenum overcomes resistance and locks RSI around overbought area in the daily chart, while the RSI in the weekly continues pushing up into overbought area, until the test of 1.1550 price level.
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. FXTimes 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.
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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