USD/CHF 4H Chart 11/23/2012 8:10AM EST
Trendline: The USD/CHF broken below the 0.9380 pivot, the rising trendline, and 200-4H-SMA during the 11/22 session. As we get into the final US session of this week (11/23), the pair continues lower, trading at about 0.9333 at 8:10AM EST. The origin of the rising trendline was the 0.9214 low from October. Therefore, the break opens up this target. Above that low, there is another support/resistance pivot at 0.9238, so 0.9214-0.9238 represents a possible support/target zone.
Pullback: The 4H RSI is about to show oversold condition with the RSI about to tag 30. A break below 30 is actually a good sign that there is some bearish momentum, but maybe near-term oversold. Also note that 0.9328 is 61.8% retracement of the Oct-Nov upswing. If there is a pullback, the 0.9380-0.9400 area should hold as resistance in order to show respect to the topping development, and bearish take-over. A break above 0.9430 could bring back the bullish outlook with 0.9511 in first focus.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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