Best Financial Markets Analysis Article A recovery in USD/CHF in December provided an initial bull sign and current expectations are for a continuation higher, with some interesting resistance then likely to interrupt proceedings.

The FX Trader’s view

WEEKLY CHART:

The losses in 2009 stopped short of the 2008 0.9674 low, finding support near to an equality target at 1.0036 (1.2298-1.0367’ downmove extended off 1.1967 high).

It was eroded, but only briefly.

On this chart an encouraging sign for bulls is the recovery above the old 1.0367 Dec-08 low.

DAILY CHART:

The Dec/Jan pullback had been viewed as temporary, with the previous break above the 1.0400 23.6% retracement providing a confirming bull signal.

Prior 1.0569/87 lows offer possible s/term resistance but our next bull target lies at 1.0700/20, the 38.2% recovery and equality target (‘0.9914-1.0507’ upleg extended off 1.0127 low).

A secondary target is at 1.0815, a Fibo projection. Resistance is likely in this area, although this could prove temporary.

Philip Allwright
Mark Sturdy

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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