Updating time : 04/12/2007 01:14 GMT

USD/CHF - 1.1289...Y'day was a relatively quiet day for the pair as price
briefly retreated to 1.1252 in European morning partly due to cross unwinding in chf b4 bouncing back to 1.1299 n then moving sideways for the rest of the day.

Although further consolidation below Friday's high at 1.1328 is in store
in Asia today, as the price action fm there is viewed as a minor correction of
recent upmove, reckon 1.1240/42 (38.2% r of 1.1098-1.1328 n 50% r of 1.1156-1.1328) wud limit downside n the rise fm 1.0889 (last month's low) to retrace MT downtrend shud resume for re-test of 1.1328 n then 1.1340/50, however, 1.1393 (50% r of the intermediate decline fm 1.1895-1.0889) is expected to hold n yield a strg retreat 'later'.

Therefore, we will look to buy dlr on pullback today in anticipation of
another rise but readers shud not get over-bullish abv 1.1350 as divergences may appear on hourly oscillators on next upmove. Only a firm break below 1.1209/13 (prev. res n 50% r of 1.1098-1.1328) wud signal temp. top has been formed n risk a stronger retracement twds sup at 1.1156/62...

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