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Safe Haven Currencies Find Support, Will it Last?
Written by article default Monday, 08 November 2010 06:20
The USDCHF spiking above the 50-Day SMA last week was an impulsive move which thankfully kept me on the sidelines as it was quickly retraced. Fed QE would sink the pair further as broader dollar weakness followed. If we see a move back above the 20-Day SMA at 0.9701 we can start to make a bullish case again with the 50-Day SMA at 0.9841 the key resistance level to target. I am also keeping my eye on the ERU/JPY as there are two significant target levels with the 200-Day at 115.87 presenting resistance, and the 50-Day SMA at 112.11 potential support. A break of either level would inspire a corresponding position. I favor a bullish move where I would target 120.00.Click here to learn more about DailyFX.