USDCHF Review by GoLearnForex

[GoLearnForex]

USD/CHF:

We have discussed correlations and their importance. Aside from straight technicals and fundamentals often what drives a currency might be its correlation to another instrument, product and or commodity. The Swiss Franc historically has had a very tight correlation to Gold, as one appreciates so does the other and vice versa.


The Chart below shows the price movement of GOLD and CHF. During Gold's most recent depreciation (as depicted between the 2 blue lines), you observe the strong correlative effect one exerts on the other. What should grab our attention as Gold has resumed its strength is that the Franc has not. As a trader you should wonder if Gold is overbought or the CHF oversold? Of course keep in mind it is not a perfect correlation of 1, meaning some variation is normal.
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[MDunleavy]

Although the greenback rose to as high as 1.0827 today, as the currency pair retreated after failing to break resistance at 1.0829, suggesting further consolidation within 1.0647-1.0829 range would take place and below the convergence of the Tenkan-Sen and Kijun-Sen (now both at 1.0737) would bring another corrective fall to 1.0680 but said lower level should remain intact, bring another rally later. Above said resistance would confirm upmove from 2009 low of 0.9910 has resumed and extend gain towards 1.0870 (1.236 times projection of 0.9910 to 1.0509 measuring from 1.0130) but the greenback should falter well below 1.0939 (50% Fibonacci retracement of 1.1967 to 0.9910).
In view of this, we are still looking to buy dollar on pullback for such rise. Only breach of support at 1.0609 would confirm top has been formed and risk retracement to 1.0562 (38.2% Fibonacci retracement of 1.0130 to 1.0829) but reckon support at 1.0497 would remain intact.[Written by ActionForex]

"P&F USDCHF1440 Box Size 200X3 or(4.78%) CLOSE
Data 1.5248 - 0.9861 ~ 92 Month ~ 2800 Day
Database 2000 records 1.07766 (Last Close)
2002-06-20 00~00
2010-02-18 00~00 (GMT+01:00) Paris
BJF Trading Group"
BJF Trading Group chart"

1.5200|~2OO||_____________________________________|0.31%|54.14%
1.5000|~4OO||X_X__________________________________|1.63%|52.11%
1.4800|~6OO||_oXo_________________________________|2.94%|50.09%
1.4600|~8OO||_oXo_________________________________|4.25%|48.06%
1.4400|~1OOO|_o_o_________________________________|5.56%|46.03%
1.4200|~12OO|___o_________________________________|6.87%|44%
1.4000|~14OO|___oX_X______________________________|8.18%|41.97%
1.3800|~16OO|___oXoXo_____________________________|9.5%|39.95%
1.3600|~18OO|___oXoXoX____________________________|10.81%|37.92%
1.3400|~2OOO|___oXoXoXo___________________________|12.12%|35.89%
1.3200|~22OO|___o_oXoXo__________X_X______________|13.43%|33.86%
1.3000|~24OO|_____oXo_oX_______X_XoXo_____________|14.74%|31.83%
1.2800|~26OO|_____o___oXoX_X___XoXoXo_____________|16.05%|29.8%
1.2600|~28OO|_________oXoXoXo__XoXoXoX____________|17.37%|27.78%
1.2400|~3OOO|_________oXoXoXo__XoXo_oXoX__________|18.68%|25.75%
1.2200|~32OO|_________o_o_o_oX_Xo___oXoXo____X____|19.99%|23.72%
1.2000|~34OO|_______________oXoX____oXoXo____Xo___|21.3%|21.69%
1.1800|~36OO|_______________oXoX____o_o_o____XoX__|22.61%|19.66%
1.1600|~38OO|_______________oXoX________o____XoXo_|23.92%|17.64%
1.1400|~4OOO|_______________oXo_________oX___XoXo_|25.24%|15.61%
1.1200|~42OO|_______________o___________oXoX_XoXo_|26.55%|13.58%
1.1000|~44OO|___________________________oXoXoXoXo_|27.86%|11.55%
1.0800|~46OO|___________________________o_oXoXoXo_|29.17%|9.52%
1.0600|~48OO|_____________________________oXo_oXoX|30.48%|7.49%
1.0400|~5OOO|_____________________________oX__o_oX|31.79%|5.47%
1.0200|~52OO|_____________________________oX____oX|33.11%|3.44%
1.0000|~54OO|_____________________________oX____oX|34.42%|1.41%
0.9800|~56OO|_____________________________o_____o_|35.73%|-0.62%
Column|~58OO|1339466537443338548454474438387389714|
Count||||||||___________________________________O_|





BJF-Trading-Group_Excel_Chart