| Sep 2 2010, 22:14:17 GMT | Sydney: | 08:14 | Tokyo: | 07:14 | Barcelona: | 00:14 | London: | 23:14 | New York: | 18:14 | San Francisco: | 15:14 |
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Traders are pressuring the USD CHF ahead of this morning's U.S. Third Quarter GDP Report. Expectations are for a growth rate of 3.2% as consumers and the government helped spend the economy out of the recession.
Yesterday the USD CHF main trend turned up on the daily chart, but is finding resistance overnight after a .618 retracement point was tested at 1.0292. This price is based on the range of 1.0032 to 1.0452.
Another sign of developing weakness is the fact that this currency pair has broken back under downtrending Gann angle resistance at 1.0252.
Given the developing short-term range of 1.0032 to 1.0285, don't be surprised if this pair pulls back to 1.0159 to 1.0129. The strength and direction of the trend today will be based on how far above or below the actual report comes out compared to the pre-report estimate of up 3.2%.
Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of
leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider
your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some
or all of your initial investment and therefore should not invest money that you cannot afford to lose. You should be aware of
all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
