Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The 4H Chart shows the USD/CHF in a sharp decline. The parity level is now in the hind sight, and the market is looking at the 0.9330, 0.9300 lows.
- The rising channel has been broken.
- The RSI dipped below 30, so it is bearish, but seeing that it was overbought just previously, the bearish signal is naked unconfirmed, and no follow through.
- It's true, this has been basically one strong bearish swing.
- Price action suggests a decline has started, but I would like to see a failed rally before being more confidence of the short-term bearish outlook towards 0.9330.
- The market could still be bullish above 0.95, 61.8% retracement.
- The daily chart shows that the 0.9750 level was an important resistance, and the market has respected it.
- Not only that, the price action looks bearish.
- The failure of the RSI to sustain a break above 60, also suggests maintenance of bearish momentum that has been carried over from the middle of 2010.
- However, the market has flattened, now and we should consider it to be in a range between roughly 0.9750 and 0.93.
- The 0.9330-0.93 level is indeed a viable target. Still, we should probably expect a really at or just above 0.95, before we can be confidence of this scenario.
Is the pullback over now? We would love to hear what you think.