As we hang around the 0.63 level, we also are sitting just above the crucial 50-day EMA. The market will, more likely than not, continue to pay close attention to the 50-day EMA, as it is crucial for our technical analysis. It’s probably worth noting that the actual resistance barrier from the previous consolidation area is closer to the 0.6333 level. The Trouble Above?The 200-day EMA, which is near the 0.64 level, has offered a significant ceiling in the market over the last couple of days, and we did pull back rather significantly. If we can break above that level, then it’s likely that this truly takes off, perhaps reaching the 0.66 handle. This is what I expect given enough time, but I recognize that there is a bit of work to be done in order to make this happen.(Click on image to enlarge)On the downside, I believe that the 0.62 level will continue to be a major support level, as we have seen it act in the past as exactly that. Anything below there, I think it’s a wipeout for most Swiss Franc-denominated currency pairs. You will probably see this in Dollar/Franc, the New Zealand Dollar against the Franc, Aussie Dollar, British Pound, etc. That would probably denote some type of run toward safety.As things stand right now, though, it does look like there are value hunters willing to get involved. More By This Author:AUD/USD Forecast: Australian Dollar Continues To SlumpGBP/USD Forecast: Testing Major SupportAUD/USD Forecast: Gives Up Early Gains
CAD/CHF Forecast: Loonie Gains Vs. Franc
