Chart of the Day – 10/18/2010 – USD/CHF

Filed in Gold, silver, ubs by on October 18, 2010 0 Comments

10/18/2010 – USD/CHF – Price action on USD/CHF (a 4-hour chart of which is shown) as of Monday (10/18/2010) has been making yet another bullish retracement beginning late last week, within the context of the strong bearish trend that has characterized this currency pair since early June. Price action hit a high around 0.9650 in early Monday trading before retreating back down to the 0.9550 support/resistance region. Despite this bullish retracement, the overall technical bias continues to be to the downside in line with the well-established bearish trend. Several triggers for potential short opportunities occur to the downside, most notably a breakdown below the bullish counter-trend retracement support line and a breakdown below the all-time low at 0.9463 established just last week. In the latter event, a longer-term downside support target resides in the 0.9100 price region, a key 261.8% Fibonacci extension. James Chen, CMT Chief Technical Strategist FX Solutions IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors. (Chart courtesy of FX Solutions’ FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.) Attached Images

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Chart of the Day – 10/18/2010 – USD/CHF

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