Forex Weekly Outlook USDCHF
by Himanshu Jain
Last week USD/CHF pair entered into a perfect volatile sideways mode between 0.9115 and 0.9250. The support came by the approaching psychological support range of 0.9000 as well as above 50% Fibonacci retracement of USDCHF’s upward move during October 27th to October 27th, 2011 to January 8th, 2012.
For the next week we expect to see some more sideways move and will have to watch for a strong break of the current sideways tunnel to expect any directional move. On the upside, a firm break over 0.9250 is important and on the downside a firm break below 0.9115 and then 0.9100 is important.
Overall on both sides we expect frequent resistance and supports and hence a slow movement. On the upside a break over 0.9250 should bring a resistance near 0.9295/0.9300. This represents Fibonacci 38.2% retracement of the downward move during January 8th to January 29th. Above 0.9300 another resistance should come near 0.9340. 0.9340/0.9345 would represent the coinciding resistance of the lower edge as well as Kijun-sen resistance of USD/CHF’s daily Ichimoku cloud. On the upside only with a firm break above 0.9345, we would expect any convincing upward move first towards the resistance near 0.9515 and with a break of that further towards the psychological resistance of 0.9500 but before that some resistance should come near 0.9475 or the upper edge of the daily Ichimoku cloud of USDCHF.
On the downside any firm break below the recent 0.9115 will start bringing in the psychological support of 0.9000 ranges. Any firm break below 0.9000 may take USDCHF towards 0.8950 or the Fibonacci 61.2% retracement level of the above mentioned upward move. Our mid-term outlook will start changing to bearish only with a firm break of this and then 0.8800 support to expect any move towards the low of 0.8567.
You may also check the weekly usd chf forecast and daily usd/chf analysis at forex trading site ForexAbode.
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