Thursday, 01th of Mar, 2012
DAILY TECHNICAL STRATEGIST
USDCHF – Halts Weakness, Upside Risk Builds Up.
USDCHF: Although USDCHF has halted its declines and triggered a recovery on Wednesday, it continues to hold on its broader downside bias started from the 0.9591 level. In case of any failure of its mentioned recovery, the 0.8929 level will be targeted with a violation of here extending price weakness towards the 0.8890 level, its Nov 03’2011 low. Further down, support lies at the 0.8700 level, its psycho level with a breach opening the door for further weakness towards the 0.8609 level and then the 0.8568 level. On further recovery, the 0.9091 level, its Feb 09’2012 low will be targeted. A reversal of roles as resistance is expected to occur at this level. However, if this fails to occur, the 0.9299 level, its Feb 16’2012 high will come in as the next upside target. Further out, the 0.9504 level, its Jan 13’2012 low and then the 0.9591 level will serve as the next upside target. On the whole, the pair remains biased to the downside though attempting a recovery.
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