Forex Technical Update

Previous: USD/CHF Contained in August Range Between 0.99 and 0.9660 (8/20)

USD/CHF Daily Chart 8/21/2012 9:05M EDT


The USD/CHF is breaking below the August range described in the previous update, as price falls below 0.9660. This also cracks the rising trendline seen in the daily chart, exposing the 0.9457 to 0.9420 support area. The RSI on the daily chart is testing 40. A break below that reflects loss of the bullish momentum established by the bull run that started in May. The current break below the rising trendline is analogous to EUR/USD's break above its declining trendline.

If there is a pullback we should look at the 0.97 level as a possible limit to the bullish outlook. It was support area of a near-term consolidation period, and is pretty much the level the rising and declining trendlines meet. A break above 0.97 clouds the bearish outlook. However, a break above 0.9810 is probably needed to introduce the bullish outlook.

USD/CHF 4H Chart 8/21/2012 9:08M EDT


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.

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.