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Wednesday, January 16, 2013

$USDCHF

USDCHF closed lower on Tuesday renewing the decline off December's high. The low-range close sets the stage for a steady to lower opening when Wednesday's night session begins trading. 

Stochastics and the RSI are diverging but turning neutral signaling that sideways to lower prices are possible near-term. If March extends this month's decline, the 38% retracement level of the July-December rally crossing at .10679 is the next downside target. Closes above the reaction high crossing at .10986 would confirm that a short-term low has been posted. 

First resistance is the reaction high crossing at .10986. 
Second resistance is December's high crossing at .11026. 

First support is today's low crossing at .10721. 
Second support is the 38% retracement level of the July-December rally crossing at .10679.