Rally overnight may be expected in sympathy with YEN and/or weaker commodities but upside appears limited. Pullback from 105.00 area gained some credibility as offers appear from big names traders say. Monday’s failure above the 1.0500 handle significant in my view. Likely this rally overnight Tuesday is testing the break-down; be ready to sell.

Upside is limited and the volumes aren’t that great so far today again. Be nimble though as a break below 1.0380 likely to draw aggressive selling.

Rate continues to attract dip buying; next dip will likely be bought around 1.0250 area again; but last three dips have failed to create significant rally. Failure last week at 1.0550/1.0600 area is setting up a short; look to sell the next rally; around 1.0500/20 I think.

Highs above the 1.0500 area may keep the rate two-way action before a move in either direction. Close under the 1.0400 area sets up a loss to 1.0250 near-term.

USD/CHF Daily

Resistance 3:  1.0610/20
Resistance 2:  1.0580
Resistance 1:  1.0550/60
Latest New York:  1.0524
Support 1:  1.0470/80
Support 2:  1.0410/20
Support 3:  1.0380

Data due Wednesday: All times EASTERN (-5 GMT)

NONE

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com