USD/CHF January 23 2012

[Garywal]

The rising in Wall Street cut out the strong momentum that the US dollar had against the major currencies, including the CHF. The pair failed in breaking-up the resistance at 0.957 and slide down to 0.93, which was a resisting area that became a supporting zone. The pair was traded around this support on the beginning of the month and the buyers took the pair up to 0.957, so this might be the same this time. However, a break-down of the support at 0.93 might trigger many automatic "sell" orders that will pull the price down to 0.91.

[Garywal]

The USD has managed to keep the price high versus the CHF, in spite the fact that it has been weakening against the other major pairs in the recent weeks. The price is moving in a channel between 0.91 and 0.925, and the CHF failed in breaking the support last week. Now, the price is facing the resistance at 0.925 and a strong break-up might take the USD up to 0.935-0.94. However, if the resistance is too strong, the price might slide back to the support at 0.91.