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Daily Forecast For USD/CHF: May 29, 2013

ByIan Copsey
Published 05/29/2013, 03:41 AM
Updated 07/09/2023, 06:31 AM
USD/CHF
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NOTE
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BIAS: I suspect a correction lower today

Resistance: 0.9780 0.9798 0.9817 0.9838
Support: 0.9734 0.9718 0.9697-02 0.9678

<span class=USD/CHF" title="USD/CHF" width="1560" height="799">MAIN ANALYSIS: Yesterday's rally was quite persistent and reached 0.9780 this morning. The common theme I am seeing suggests a pullback lower. Also, take note of the 0.9798 projection. Overall I see downward progress towards the 0.9718 corrective low - possibly the 0.9697-02 area. At these supports it wouldn't surprise me to see a mild correction higher. As long as this remains below 0.9780, we should then see losses below 0.9718 and 0.9690 to extend losses to 0.9645-55 at least. From this point on, start looking for bullish reversal signals. The problem with this correction is that it has no ideal depth. Note the 0.9630-40 area.

COUNTER ANALYSIS: Any earlier break above 0.9798 would extend gains to the 0.9838 high. Take care here, as this is another area that could trigger a correction lower. Above note 0.9859-76 and 0.9898.

MEDIUM TERM ANALYSIS:
29th May: I think it's safe to say the rally has resumed, but we've only seen its first leg. While 0.9631-60 supports (although even a 100% retracement would still be valid) we should see the uptrend resume. At this point I don't have the foundation waves to identify the next intermediate target, but overall I do feel this rally will retest the daily 0.9971 high.

Only back below 0.9590 would be a matter of some concern; if this comes with a break of the Dollar Index at 83.43, we'll have to review it as it will suggest further losses.


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