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.
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