US dollar vs Swiss franc attempts bullish breakout
James Chen October 25, 2012 11:00 PM
<p>USD/CHF (daily chart) as of October 25, 2012, has made yet another attempt at breaking out above a solid bearish trend that has been in […]</p>
USD/CHF (daily chart) as of October 25, 2012, has made yet another attempt at breaking out above a solid bearish trend that has been in place since the July 0.9970 high. Despite the bullish effort, however, the price has not yet been able to make a convincing enough move to the upside that would significantly disturb the entrenched bearish trend.
Yesterday’s price action formed a doji shooting star candle pattern that attempted a move up to break the bearish trend line, but has been unable to follow through to the upside as yet. This tentative price rejection/failure provides some indication of a possible resumption of the bearish trend bias. The low on the current downtrend resides just above the 0.9200 support level, which was approached last week before the current upside correction. If the price is able to continue its bearish trend with a breakdown below 0.9200, it could move towards a retest of the key 0.9000 level.
To the upside, if the current bullish correction is ultimately able to follow through with a strong breakout above the bearish trend line, immediate potential resistance to the upside resides around the 0.9425 level.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.