Tuesday, December 23, 2008

Swiss Franc Technical Outlook

We maintain that the US Dollar/Swiss Franc is likely to hold important Fibonacci support through the near future. The 1.0670 mark represents the 61.8 percent Fibonacci retracement of the 1.2300-0.9640 move, and said level may continue to contain declines through price action in the coming weeks.

The shorter-term picture is much more difficult to decipher, as the severity of recent USD/CHF moves leaves little in the way of significant resistance levels. Previous spike-highs just above 1.1300 represent the next level of clear resistance, and the USD/CHF could effectively remain within a range through the holiday-shortened week of trading.

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