[B]DAILY TECHNICAL OUTLOOK ON USD/CHF[/B]
[B]Update Time: September 19, 2007 00:25 GMT[/B]
USD/CHF - 1.1824...Although the dollar bounced from 1.1854 to 1.1896 in yesterday's U.S. morning session in part due to cross selling in the chf, the greenback then nose-dived following the Fed's 50 basis point rate cut (economists were expecting only a 25 basis point cut) and the price hit a new two-year low at 1.1792 (this morning's low in Australia) before recovering.
Today, in line with our bearish outlook on the dollar across the board, selling in anticipation of another fall is recommended and below 1.1792 would extend weakness to 1.1738, being 50% projection of 1.2771-1.1815 from 1.2216, however, as hourly oscillators are likely to be in oversold territory on such a move, reckon 1.1667/82 (equality projection of 1.2771-1.1880 from 1.2573 and 80.9% retrace of 1.1285-1.3286) would limit the downside and risk has increased for a corrective rebound later this week. Looking ahead, below 1.1738 would bring an eventual fall to 1.1625 (61.8% projection of 1.2771-1.1815 from 1.2216).
On the upside, above the overnight NY high at 1.1896 would defer but only a break of 1.1924 (Sep 14) signals that a temporary low has been formed and risks retracement to 1.1960...
