By: Colin Jessup
The Swissy appears to have found some resistance at yesterday's close of 0.9550 after reaching as high as 0.9594 before falling 100 pips to close well below yesterday's open and closing the day at 0.9494.
Prices have been mostly bullish since hitting a low in August at 0.7068. Now the pair finds itself on a strong resistance zone where it spent several weeks from October 2010 through February 2011. This is a critical level for the Swissy. It will need to break above 0..9575 before challenging 0.9775 on its way to par. This is possible for sure, but in the short term we could see prices fall to 0.9440 or 0.9300 before making another run for these upper resistance zones.
Also of interest is that we have broken above the weekly moving average at 0.9150. Prices has not danced above the weekly moving average since the week of June 27, 2010, indicating a possible confirmation for the change from bearish mentality to bullish once again.
Happy Trading!
