USD/CHF Technical Analysis July 27, 2011

The USD/CHF pair continued its massive move south on Tuesday as traders rushed into the Franc for its safe-haven status. Oddly enough, the world’s stock markets have done reasonably well in the midst of the US debt talks stalling, so it is particularly striking that the Franc is being bought in droves. We see the 0.80 level as a massive support area, and at the time of this writing, the markets are coming to grips with it. We like selling on rallies, and a break of the 0.80 level, with a pullback and confirmation of that level turning into resistance.

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