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Monday, October 15, 2012

$USDCHF

$USDCHF closed higher due to short covering on Friday. The mid-range close sets the stage for a steady to higher opening when Monday's night session begins trading. 

Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at .10793 would confirm that a short-term low has been posted. If December renews this week's decline, the 38% retracement level of the July-September rally crossing at .10550 is the next downside target. 

First resistance is last Friday's high crossing at .10793. 
Second resistance is September's high crossing at .10838. 

First support is the reaction low crossing at .10609. 
Second support is the 38% retracement level of the July-September rally crossing at .10550.