USDCHF 2-8-07

2-8-07

USDCHF

The USDCHF extended the range lower yesterday to the 1.2376 area of support and then rallied to near the 1.2500 resistance area this morning. There is the 1.2518 area of resistance ahead if the USDCHF manages to push past this 1.2503 area of resistance.
I will short the 1.2518 area if the USDCHF manages to rally up to it without basing near the 1.2503 area of resistance. I would cover near 1.2422. If the USDCHF does rally up to 1.2518 after basing near 1.2500, the next area to short with a 3 to 1 risk to reward is 1.2550.