Follow up on USD/CHF price action
December 19, 2013 in Chart Alert
We had recently talked about the possibilities that USD/CHF may be heading for deeper declines in the near future. You may please check it at “Is USD/CHF heading for a nosedive?“.
There has been a strong upward jump recently which took the pair to 0.8859. Slight resistance is being faced around this level which is also near the 22-day EMA.
USD/CHF’s upward jump
Considering the strong jump some more upward consolidation can not be ignored but lets check out what we can expect.
USD/CHF and expected resistance levels
Some further gains towards the 55-day EMA i.e. 0.9020 can not be ruled out but a strong resistance will be expected there. This resistance will be a combined effect of the following 3 forces:
- 55-day EMA
- The short-term trend line resistance
- The psychological resistance of 0.9000 ranges.
In fact the gains can even extend to 0.9060.
With the above resistance if the prices fall below 0.8849 again and manage to sustain below it for sometime then further declines, as indicated in the previous post as quoted above will be expected.
To quote it for the ready reference: “A drop towards 0.8568 to 0.8630 support and then lower can be expected. Considering the overall price -action we do not rule out the possibilities of a fall even towards 0.8240 or more in the days to come.”
Do share your opinions in the comment box below.