Technical Trading Tips and Techniques by 
Price action on USD/CHF, a daily chart of which is shown, has consolidated right at a key support confluence area. This support region includes a long-term uptrend support line extending from the March 2008 low, as well as a key support/resistance price region in the 1.0810-1.0850 zone. At the same time, price is also traversing a steep short-term downtrend channel. Any breakdown of the support confluence within the context of this downtrend channel should indicate substantial bearishness going forward. In that event, the immediate further support target resides in the region just above 1.0700, with yet further major support around 1.0600. Upside resistance within the context of the current downtrend resides around the top line of the steep parallel downtrend channel.
UPDATE: As of Friday (May 29) morning, significant dollar weakening has prompted a substantial breakdown of support that has reached the noted support region around 1.0700. In the case of further bearishness, the next support target to the downside resides around the 1.0600 price region.
Nice chart. I’m a big fan of highlighting opportunity or decision points and giving traders time to implement whatever strategies they prefer.
Anyway, just wanted to say thanks.
Hi FXRookie,
Thanks so much for visiting and for your kind comments! It’s very much appreciated.
- James Chen