USDCHF Classic Technical Report 08.29.2012
Prices recoiled downward after a test of resistance at a rising trend line established from late May (0.9516), with sellers seeing initial support at the bottom of a falling channel set from the July 24 swing high (0.9494). A break below that exposes the 50% Fibonacci retracement at 0.9451. Still, a Bullish Engulfing candlestick pattern completed last week hints at an upside bias, with only a close below the formation’s low (0.9538) acting to invalidate. A reversal above resistance initially exposes 0.9650.
Daily Chart - Created Using FXCM Marketscope 2.0
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