USD/CHF New All-Time Low, Pushing Lower

USD/CHF (daily chart) as of Friday (7/29/2011) has established yet a new all-time low, this time breaking below the 0.7900 level for the first time. This breakdown occurs within the context of a remarkably strong and technically-behaving long-term, medium-term, and short-term downtrend. This bearish trend, which has essentially been in place since the June 2010 high, has made progressively lower all-time lows and has adhered to key support/resistance levels and technical targets. After having just broken down below the 0.8000 psychological level and reached a key 261.8% Fibonacci extension target in uncharted territory, the strong bearish bias for this pair continues. With upside resistance now tentatively residing around the just-broken 0.8000 level, Swiss franc strength could now be targeting further downside support around the 0.7500 price region.

(Click on chart to enlarge. Forex chart key: price on 1st pane, Stochastics 14,3,3 on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average (SMA) in orange; 100-period SMA in brown; 200-period SMA in dark blue; Fibonacci levels in magenta.)

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

USD/CHF Hits New All-Time Low, Continues Bearish Trend

USD/CHF (daily chart) as of Tuesday (6/28/2011) has hit a new all-time low, breaking down below the previous all-time low of 0.8325 that was just hit in early June. Having dipped below the 0.8300 figure, price action has tentatively confirmed a continuation of the entrenched long-term bearish trend that has been in place for a little over a year now, since the June 2010 high. This bearish trend has displayed very technical characteristics, with regular trend moves to the downside that breakdown key support levels, interspersed with periodic bullish corrections/retracements to key resistance levels. Now that a new all-time low has been established, the directional bias continues to be significantly to the downside. Further bullish retracements notwithstanding, an important bearish target resides around the 0.8000 psychological level.

(Click on chart to enlarge. Forex chart key: price on 1st pane, Stochastics 14,3,3 on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average (SMA) in orange; 100-period SMA in brown; 200-period SMA in dark blue; Fibonacci levels in magenta.)

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

Webinar Rebroadcast: Charting the Majors with James Chen

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Charting the Majors with James Chen Rebroadcast

Please click on the following link to access the rebroadcast of today’s Charting the Majors with James Chen: https://www1.gotomeeting.com/register/335262736 .

USD/CHF Strongly Bearish, Due for Bullish Correction

(Please click on the chart to enlarge. Chart key: price on 1st pane, Stochastics on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average in orange; 100-period simple moving average in brown; 200-period simple moving average in dark blue; Fibonacci levels in magenta.)

6/08/2011 – USD/CHF (a daily chart of which is shown) as of Wednesday (6/08/2011) continues with a strongly bearish bias in line with the steep downtrend on multiple time frames. From a longer-term basis, price action has seen a clear and well-formed downtrend that has been in place for almost exactly one year since the 1.1730 high in early June 2010. From a shorter-term basis, the pair has been entrenched in a strong leg down since the 0.8945 high in mid-May. The current low that has been hit, which represents an all-time low for the pair at 0.8325, was reached earlier this week. This low also represents the 161.8% Fibonacci extension target of the last major bullish correction within the current downtrend. Having reached this downside target, price action should soon be due for another bullish correction before potentially falling further to continue the strong downtrend. In the event of this bullish correction, the pair could correct back up to the prior extreme low around 0.8550. In the event of a downtrend continuation, a key downside target in uncharted territory resides around the 0.7900 price region, which represents the 261.8% Fibonacci extension of the noted last bullish correction.

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

The NY Opening Forex Commentary for June 7th

NY Evening Forex Commentary for June 6th 2011

The Midday Forex Commentary for June 6th 2011

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