27 January 2012 at 9:14 GMT
USDCHF – Yesterday we expressed caution based on the fact that USDCHF had stalled at .9204, 38.2 percent pullback of gains from Oct to Jan (.8568-.9597). Although the downside was initially extended, the lows were not sustained, with the majority of the losses recaptured. This resulted in USDCHF trading back inside this key Fibonacci level, effectively a false break. Although signals are far from strong, this has resulted in the bias being positive. Therefore our call for today is Bullish above .9156
The immediate profit objective is .9276, Wednesday's open, with a move below that point targeting .9341, yesterday’s high, then towards, but probably not as high as, .9397, this week’s high.
The risk to this call is that buying interest is weaker than currently assessed. This would be signalled by a move through .9156, yesterday’s low.
