USDCHF 12-14-06

12-14-06

USDCHF

The was a short trade in the USDCHF triggered at 1.2074 yesterday which was closed at 1.2040. There were several tests of the area of supply yesterday to allow an entry. The retail sales report that was dollar positive was what drove the price to the area of supply for the short trade entry. This morning, the USDCHF is going to try to absorb the supply at 1.2074 again. It may rally past this area, but there are two more areas above that should kill any type of breakout. I will pass on trading the USDCHF today to see if it forms a base near the 1.2074 area to move higher.