USDCHF- Bullish Price Extension Targets Key Resistance.
USDCHF: A third week of upside gains has put the pair firmly above the 0.9424 level, suggesting further bullish pressure is likely to occur. With that said, USDCHF looks to target the 0.9550 level as long as it holds above the 0.9424 level. A breach of the 0.9550 level will open the door for more upside offensive towards the 0.9606 level. Its weekly RSI is bullish and pointing higher supporting this view. Alternatively, support comes in at the 0.9424 level where a reversal of roles is likely to occur and turn USDCHF higher. However, if this fails to occur, a run at the 0.9275 level will follow where a decisive break will set the stage for a move lower towards the 0.9193 level, its May 07’2012 low. On the whole, the pair remains biased to the downside in the medium term.
GBPJPY: Follows Through On Rejection Candle, Scope Seen Towards 123.27 Level.
GBPJPY – With GBPJPY following through higher and triggering a corrective recovery the past week, scope for further strength is now seen towards its nearby resistance at the 123.27 level, its Aug 10’ 2011 low. This is coming on the back of its previous week rejection candle formation. A decisive break and close above the 123.27 level will extend its corrective recovery possibly towards the 125.05 level, its Sept 06’2011 high. Further out, resistance comes in at the 127.31 level, its Aug 22’2011 high. Its weekly RSI is bullish and pointing higher supporting this view. Alternatively, the risk to this analysis will be a return to the 116.78 level where a decisive violation will call for a run at the 115.00 and 114.00 levels, all representing its psycho levels. All in all, though the cross continues to maintain its long term downtrend, it now faces corrective recovery risk of its recent declines.
