USDCHF Analysis – Aug 27, 2008

USDCHF’s up trend remains. As long as 1.0842 support holds, we’d expect up trend to continue and further rise towards 1.1200 is still possible in a couple of days. However, a break below 1.0842 key support will indicate that the rise from 1.0010 has completed, and then pullback towards 1.0600 could be seen.

For long term analysis, USDCHF broke above 1.0623 (May 8 high) long term resistance, suggesting that the long term down trend from 1.3288 (2005 high) has completed. The rise from 0.9634 (Mar 17 low) is now treated as resumption of long term up trend. Further rise towards 1.1600 is now in favor.

usdchf daily chart