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Thursday, August 23, 2012

$USDCHF

$USDCHF  closed higher on Wednesday as it extended the rally off July's low. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. 

Stochastics and the RSI are diverging but have turned bullish signaling that sideways to higher prices are possible near-term. If September extends the rally off July's low, the 38% retracement level of this year's decline crossing at .10488 is the next upside target. Closes below the reaction low crossing at .10201 would confirm that a short-term top has been posted. 

First resistance is today's high crossing at .10445. 
Second resistance is the 38% retracement level of this year's decline crossing at .10488. 

First support is the reaction low crossing at .10201. 
Second support is the reaction low crossing at .10112.