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Looking to Buy USD/CHF on Break of Friday's High
Written by article default Monday, 27 September 2010 12:28
Setbacks have finally stalled out ahead of the critical record lows from 2008 by 0.9645, with the market finding a bottom for now by 0.9780 ahead of the latest minor bounce. Short-term and medium-term studies are certainly looking quite stretched and longer-term cyclical studies warn of a major bottom. Friday’s close is quite constructive with the market extending to fresh lows and rejecting the move lower before closing back by daily opening levels. This sets up the potential for a short-term reversal, with a break and close back above 0.9880 to confirm bias and accelerate gains. Inability to establish back above 0.9880 will however keep the downtrend intact and leave the door open for a retest of the record lows by 0.9645. STRATEGY: BUY @0.9885 FOR AN OPEN OBJECTIVE; STOP 0.9770. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON MONDAY.Click here to learn more about DailyFX.