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The curious case of USD/CHF PDF Print E-mail
Monday, 10 November 2008 17:09
Today marks the 5th day out of the last six that price action has been stonewalled by 1.1800. The daily chart below shows just how clearly this Resistance is.
forex dialy chart

Looking at a shorter-term timeframe shows how clearly that pressure is building from the bottom side too.
forex dialy chart

Standing at this price level represents significant risk to traders who are trying to determine which way to trade. A breakout to the top brings a good strong move to the 1.2400 area, which leads to 1.3000 in the future. Progress in this pair has been slow and difficult. With the Ascending Wedge still in place and price action flattening out at this level, it looks like a test of the lower line is not out of the question. Currently this line is at 1.1296/1300, and the smaller day and half ascending triangle lower line around 1.1731, and then 1.1650.
All in all, there is plenty room for a small to medium sized fall before serious attempts to higher take hold. However, since a good portion of the overbought indicators are now below overbought levels, a move could initiate from current prices.
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