Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Similar to several other USD crosses, notably AUDUSD, another move towards USD weakness may be needed before new USD highs are seen. Look for a low in the coming days from .9566 (former highs) to .9627 (5/10 high). The topside of the neckline from the completed inverse head and shoulders pattern is at about .9600. The Elliott channel for 4th wave estimation and former corrective channel also intersect at .9600 later next week. A daily close below .9520 would suggest that the breakout has failed.
FOREXTrading Strategy: Looking for a low near .9600…next week? Several days of chop are probably in order after today. One must respect the potential for this entire thing to fall apart too (use stops!) after CME volume on Wednesday was the highest since 8/9/11…that USDCHF low hasn’t been seen since.
LEVELS: .9566 .9600 .9633 .9736 .9781 .9898