Previous: USD/CHF Forming a Double Bottom (1/31)
USD/CHF
The USD/CHF has been consolidating since hitting 0.9113 and rallied to 0.9264. Instead of popping up from a double bottom, it has created a range between these two pivots. There is also a middle band that can be seen between roughly 0.9160 and 0.9210. The 4H chart shows the market trading at the range support around 0.9113 during the 2/8/2012 European-US session. The RSI rejected a brief break above 60, sign of bearish bias, and if the reading can fall back below 40 as it is attempting right now, the bearish continuation can be confirmed.
The next support pivot seen in the daily chart is near 0.9055. If the market does indeed continue the bearish attack in the short-term, the target is really a reversion back to the 200 day SMA, which is near 0.8730 at the moment. If the market rallies above 0.92 however, watch out for further consolidation and maybe even bullish correction, in which case the outlook to 0.8730 would have to be shelved until the market gives clues toward it.
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Fan Yang CMT is the Chief Technical Strategist for IBTRADE, a trader, educator and a main contributor 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.
