USD/CHF Classical Technical Report 09.09
USD/CHF: The latest sharp reversal off of record lows just shy of 0.7000 is encouraging and could finally be starting to signal the formation for a major base with a sequence of medium-term lower tops broken. A recent acceleration of gains beyond critical resistance and a previous lower top at 0.8550 confirms bullish bias and from here, we see room for fresh upside towards the 0.9000-0.9500 area over the coming weeks. Look for any setbacks to be well supported above previous resistance now tuned support at 0.8240 on a daily close basis, while ultimately, only back under 0.7700 would negate bullish outlook and give reason for pause. The break and close back above the 200-Day SMA for the first time in several months provides more ammunition for our highly constructive outlook.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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