US Dollar vs Swiss Franc Stalls After Falling to Key Support
James Chen December 14, 2012 8:40 PM
<p>USD/CHF (daily chart) as of December 14, 2012, has stalled after hitting a rough triple bottom just above the 0.9200 support area. In the process, […]</p>
USD/CHF (daily chart) as of December 14, 2012, has stalled after hitting a rough triple bottom just above the 0.9200 support area. In the process, price has just established a new seven-month low. After the first bottom was established in mid-September, price began forming a broadening pattern that has extended to the third bottom. Broadening formations can be considered potential swing trading areas within the pattern bounds. But with the overall trend bearish from the July 0.9970 high, any breakdown below the pattern’s support level, around 0.9200, would break this broadening formation and confirm a bearish trend continuation. In that event, price could move towards potential downside support around the significant 0.9000 level. If price respects 0.9200 area support with a bounce, the broadening pattern could continue with potential upside resistance around the 0.9400 and then 0.9500 price regions.