USDCHF—met strong resistance

My long from 1.0538 stopped out at breakeven yesterday. The pair has fallen back from its high of 1.0613 today, right at the level I blogged about yesterday where I said it would run into serious resistance from the moving averages. So it did. Had I been more alert to it this morning I would have shorted. I may still if it can get another little bounce and then falter there. I'd take another long if it could close neatly above that.

Basically, though, the USD is still trying to find a direction and its dip below 80.08 yesterday was disappointing to dollar bulls. However neither the pound or the Euro really were able to take advantage of that weakness so things are still unclear.

With the Swissy, the 100SMA on the daily chart seems to be providing support at 1.0509 (low so far today is 1.0513). The 200 daily SMA 1.0466 and the 4/1 low at 1.0435 are additional support. If it can get above 1.0613 (cleanly and decisively) then 1.0763 is possible.

Here's the daily 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.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.