The pair used its prior resistance of 1.0660 as support earlier this morning. This is a positive development. So far it has reached a high of 1.0725, exceeding it's 1.0711 high from overnight. Monday's high was 1.0693 so this is a resistance level it's going to have to get solidly above in order to achieve higher highs. Higher will also take USDCHF above the downtrend line. There is, though, still negative divergence. Should the pair falter and drop back to the 1.0525 area, it will be very attractive as a long.
My long from 1.0636 is still in play. I took a bit more in profits at +80 pips but will leave the rest of the trade alone for now to see if it can begin running.
Support is at 1.0694, 1.0660, 1.0603, 1.0527/35, 1.0503 and 1.0435. Resistance is at 1.0725, 1.0764/88, 1.08, and 1.09.
Here's the one-hour chart:
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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