USD/CHF Technical Analysis September 5, 2011

USD/CHF fell hard on Friday as the Non-Farm Payroll number disappointed in the US. The pair fell as low as the 0.7720 area, but ended the day by forming a hammer. This shows that the pair may not be ready to fall to new lows just yet. The set up is fairly simple at this point: A breaking of the lows on Friday would be massively bearish. A move above the weekly trend line on our chart would be massively bullish. However, a breaking of that trend line must also be accompanied by a closing above the 0.83 level on the daily chart as well in order to clear massive resistance. If we can close above 0.85 – we would call for a trend change for the medium-term.

Written by FX Empire