Quantcast

Follow up on USD/CHF price action

December 19, 2013 12:11 am GMT+0  in Chart Alert

+1
  

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

USD/CHF near 22-day EMA

USD/CHF near 22-day EMA

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

USDCHF and expected resistances

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.

You may also like to check the  USD/CHF weekly forecast and the USD/CHF daily analysis.

Author Info

Avatar of ForexAbode.com

ForexAbode.com's analysts provide Forex market analysis based on technical, fundamental as well as psychological aspects. Apart from the daily and weekly Forex outlook posted on the respective pages, the outlook and news are also updated on the blog section. ForexAbode analysis is also featured on some of the leading financial news and analysis sites. Please use the comment form below or contact us page for any comments, suggestions or complaints. You may also write to us at contact(@)forexabode.com by removing the brackets in the email address.

Contributor Contact, Accountability and Policies

Leave a reply

Your email address will not be published. Required fields are marked *