Forex Technical Update
The USD/CHF remained bullish, and rallied past the 0.9180 swing projection, but was rejected at 0.9220. We had a strong 4H bearish candle in the 11/15 European session, but this candle failed to close below the 0.9150 pivot. If the market takes a break after the US session opens, and slides below 0.9150, the next support pivot is the 0.9080 level (going down to 0.9050). This area also represents the projected trendline seen in the 4H chart. If we break below 0.9050 and the RSI is pushed back below 40, we would have likely shifted from a bullish to range-bound market. At this point, a conservative bearish target considering the bullish nature of the market, would be back to the 200SMA, and the pivot near 0.8950.
The daily chart shows a market that remains bullish after breaking above the 200 day simple moving average. The RSI remained above 40 after tagging 70, and is now is about to return above 60. The 0.9300 handle is the very short-term resistance. There is still a prospect for further consolidation if the market respects this resistance. Again, a break below the rising trendline seen in the 4H chart will suggest a range-bound market, although with a bullish bias based on the daily chart.
Further upside above 0.93 opens up 0.9790, especially if 0.93 area becomes support.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.