Chart of The Day: USD/CHF

3/19/2010 – USD/CHF – Bullish price action on USD/CHF, a daily chart of which is shown, has made a tentative bullish bounce off the key 1.0500 support region. This occurs after around a week of bearishness in the pair. The current bounce places USD/CHF on track to continue the uptrend that has been in place since the November 2009 lows below parity. Currently, strong dynamic upside resistance on this bounce resides around the long-term downtrend resistance line extending from the November 2008 high. Any subsequent breakout above that trendline could target further upside resistance in the 1.1000 region. Key support within the context of the current uptrend continues to reside in the noted 1.0500 price region.

James Chen
Chief Technical Analyst

FX Solutions

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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)