Daily Technical Update
May 14, 2010

USD/CHF Breaking 1.123 Resistance.


Daily: The USD/CHF is retesting, and breaking previous week’s high at the 1.23 area. There’s resistance here, and the RSI shows the market in overbought zone, although still in a healthy uptrend.
If the market closes above 1.23, and survives a throwback, it can go to the 1.1550 area.



Weekly: The weekly chart shows that the 1.23 resistance is more than a minor top. The SMA 200 and the 61.8% retracement level both reside here. The pair showed respect for this area in the previous week, after a 200-pip rejection. This week that is ending, brought the pair back up, “chewing up” the tail.
Next week will be very telling.
The RSI suggets you have to juggle with two scenarios. Overbought and the market reacts with resistance against a significant break above 1.23. Or, the momenum overcomes resistance and locks RSI around overbought area in the daily chart, while the RSI in the weekly continues pushing up into overbought area, until the test of 1.1550 price level.
Fan Yang
Currency Analyst
Commodity Trading Advisor

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