FOREXYARD: Forex News Blog

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USD/CHF May Attempt Second Breach of 0.9600 Today Posted: 23 Dec 2010 11:00 PM PST The Swiss franc's bullish run against most of its currency counterparts may begin to see corrective movement as the year comes to an end. The influx of positive economic data out of the United States has begun to push many traders back into riskier assets and away from traditional safe-havens. Both the USD and CHF represent safe-havens in times of trouble, but the franc has been more so since the recent debt fallout across Europe began to plague other investments. As such, the franc may be in a position to experience some moderate corrections over the next week or two as the year comes to an end. As we can see from the chart below, this pair continues to move within a bearish trend, but technical indicators are suggesting that we may see upward movement in the immediate future. The MACD shows clear bullish crosses and an ascending price pattern, both of which highlight growing upward momentum and pressure. The Relative Strength Index (RSI) has recently entered the over-sold region on this pair, which supports this bullish notion. After yesterday's failed attempt to sustain a price above the 23.6% Fibonacci retracement line at 0.9600, this pair now looks poised for a second attempt. Now may be a good time to go long on the USD/CHF. USD/CHF – 8-Hour Chart

Thin Markets and Jumpy Prices ahead of Xmas Holiday Posted: 23 Dec 2010 09:45 PM PST With market volume and liquidity at a quarter of its normal volume today, sharp moves in the currency pairs may be expected. No news events will be expected today and there is, as a result, little to report on for the day. Traders should simply note the thin market conditions today and make sure to protect their investments with Stops and Limits as jumpy prices tend to result from such a trading environment.

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