Forex Technical Update
USD/CHF 4H Chart 6/26/2012 10:30AMEDT
The USD/CHF has been recovering since finding support at 0.9410. The pair has broken above a declining channel/wedge correction pattern against May's rally. Therefore, a recovery against June's decline can also develop into a continuation of May's trend.
The market is now at a pivot zone roughly between 0.9640 and 0.9655. We have seen this area act mostly as resistance in June. Above 0.9655, the market opens up toward the June high near 0.9770.
Let's take a look at the 1H chart. Here we see that the rally since 0.9422 6/20-low, is still intact, both in market action and momentum perspective. If the market slides below a recent support pivot at 0.9485 and push the RSI below 40, then we have signs that there is topping here. If so, the first target is the 0.9540 pivot and the 50% retracement at 0.9530. Also note that the 200-hour SMA resides here.
USD/CHF 1H Chart 6/26/2012 10:28AMEDT
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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