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…if so, time to jump on the correction higher as prices reach for the 20 period SMA. This rally has carried the USD/CHF to the 50% Fibonacci Retracement of the April 19 high to May 5 low. 5-6-2011 9-59-39 AM.jpg

USD/CHF daily chart with the 34EMA Wave and GRaB plug-in

This move is an aggro swing short and that means I will enter with less size than I would if the pair corrected higher to the 34 period EMA low. Considering the Expected Price Range forecast for this pair over the next 24 hours, I am satisfied with this near-term high and the aggro short. 5-6-2011 10-11-34 AM.jpg

USD/CHF PowerStats 24 Hour Projection. PowerStats graph alert courtesy of Autochartist

Remember that the swing short is valid because of the downtrend that this time frame is in. In the larger scope of things, the daily’s bearish Directional Bias increases the likelihood that resistance levels will be sold into as the franc continues to maintain overall strength against the dollar. The follow-through lower on this entry is dependent upon the area between 74.35 and 74.63 holding as resistance on the U.S. Dollar Index. Follow me on Twitter!

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