USD/CHF Daily Chart 6/7/2012 11:12AMEDT
The USD/CHF has fell from the 0.9770 area and is now testing the 0.95 handle. This dip has broken below a rising trendline seen in the daily chart.
The RSI has fallen back below 70 so there’s no overbought condition anymore. The 0.95 level is also 21-day SMA. Will we find support here?
If the market fails to push below 0.95, a continuation of the trend can retest the 0.9770 high and the 0.98 handle with the parity level in sight.
USD/CHF 4H Chart 6/7/2012 11:16AMEDT
The 4H chart shows that the market may have just completed an ABC correction. A break above the declining trendline would have completed one leg of a correction, but we might not be done with consolidation, so until we can push above 0.9765 area, we are still in consolidation.
Fan Yang CMT is a trader, educator and the Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
