Looking at the daily USD/CHF chart, connecting the 10/27/2011 low of 0.8562 with the 4/2/2012 low of 0.9001 is a risingtrendline that represents support. The market is directionless as it has been trading in a sideways pattern marked by highs at 0.9331 and lows at 0.8927. The projected triangle does not really matter anymore since price is very near the apex and abreakout can occur sideways.
Notice that the support zone is between 0.8927 and 0.90. And the resistance area is between 0.9250 and 0.9330. We can anticipate tendency of price to return from these areas back to the middle of the range, which is around 0.9140. Only a break out of this range suggests trending direction. To the downside, a break below 0.8927, 0.89, opens up the lows in the0.8562-0.8640 area. A break above 0.9331, 0.9350, opens up the highs around 0.9570.
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Fan Yang CMT is a trader, educator and the Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.