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Technical Analysis: USD/CHF

Posted by Akhilesh Ganti on May 14, 2013 9:15:00 PM

usdchf 051413 W

USD/CHF broke out above key resistance level at 0.9630 yesterday as the bullish US dollar gains momentum. The weekly chart shows that the Bollinger bands are starting to expand which happens when volatility increases. Though the prices are at the upper band, which is considered to be the overbought state, price action would seem to suggest that this pair is in the throes of an impulsive move that has a bit more to go before a correction ensues. Yesterday's breakout would seem to suggest that the markets' immediate focus will shift to the 0.9694 level which, if breached, will likely target the 0.9810 and eventually the 07/24/13 highs of 0.9972 over the next few weeks. Initial support can be found at 0.9630 and yesterday's low of 0.9520, with the key support area between 0.9480-0.9499. At this juncture, only a move back below 05/09/13 lows of 0.9334 will negate this pairs bullish sentiment.

{chart:Bloomberg}(click to enlarge)




 

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