Forex Technical Update
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.
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