Article originally published on innerfx.com and republished here with permission
Quote of the day: “A lie told often enough becomes the truth.” ~ Lenin
Good morning. The Swiss franc made some huge moves yesterday against its counterparts as the SNB capped franc’s rate to 1.20 against the euro, just like they’ve been threatening for a while.
Resistance at 1.43 capped the upside yesterday, as noted in my report. The rally has been corrective – following EURCHF, but it was yet another opportunity for sellers to jump in. I expect the tone to remain the same, thus looking for more selling opportunities on signs of further weakness.
The highlighted reversal candle from my yesterday’s post was a good confirmation that the correction came to an end.
Swiss franc Vs Japanese Yen 4hrs Chart 9-7-2011
As you can see, the 50% retrace value of last upward swing is intact and silver is currently recovering. I remain bullish as long as it holds above 40
Although it lost some ground after reaching the high at 1.0760, it is still bullish on short-term basis and today’s rally may extend higher, so it’s worth keeping an eye on this resistance zone around 1.0600