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Friday, January 18, 2013

$USDCHF

USDCHF closed lower on Thursday as it extended this week's decline. The mid-range close sets the stage for a steady to lower opening when Friday's night session begins trading. 

Stochastics and the RSI are bearish 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 20-day moving average crossing at .10884 would confirm that a short-term low has been posted. 

First resistance is the 20-day moving average crossing at .10884. 
Second resistance is the reaction high crossing at .10986. 

First support is today's low crossing at .10689. 
Second support is the 38% retracement level of the July-December rally crossing at .10679.