USD/CHF - Continued Strenght?

USD/CHF - Triangle Formed with Fibonacci Support

Since the Fed's announcement of QE (Quantitative Easing) policy on the 17th of March, which led to a 5.6% depreciation of the dollar (1.1800 - 1.1170) in 24 hours, USD/CHF has been able to rebound to a high of 1.1550/CHF. Since reaching the highs last week, we've now tested the 50% retracement level of 1.1360 several times, being able to close above every time. The pair needs to hold above 1.1400 level if our trading plan is going to turn into a bullish opportunity. The 55 day moving average is aligned perfectly with the drawn trend line from last weeks' high to yesterdays' high. The 21 day MA is just underneath at 1.1381; USD/CHF currently trades at 1.1432.

A triangle/flag pattern has formed with a lot of Fib support inside. Besides U.S. unemployment claims Thursday morning, Suisse Gov. board member Hildebrand will be speaking about the "Developments in the Current Financial Crisis" at the Swiss Funds and Asset Management Forum, in Bern. With Switzerland's recent surprise announcement of intervention in the EUR/CHF pair, his comments will be closely monitored by the forex community for any clues surrounding the Swiss National Bank's intervention.

We shall see what happens during the London session and into the NY open.