Wednesday, March 25, 2009

USD-CHF moves down but bounces off support line

USD-CHF hourly chart support line

Price has bounced back from the support line drawn in grey in the hourly chart above. If price were
to give an hourly close below this line, short positions can be taken with a stop of 70 pips above the line.

Why is this line acting as support ? Because it is the 50% retracement of the earlier upmove. Levels are marked on daily chart below. Infact the level has been holding up for many days now. It it breaks, then
minimum target will be the 0.618 fibonacci retracement level at 1.0980, with a further slide below it possible too.

Similarly, a move above the .382 retracement level at 1.1357 should mean that price then would continue its uptrend & take out the previous swing high of 1.1940 over the coming few weeks. Take positions accordingly.