Forex Technical Update
Instead of an ABC Correction, the USD/CHF correction has been sideways. It has for the most part respected the 200 hour simple moving average, although it has anchored out of a rising trendline. The consolidation since 11/17 has brought some bearish momentum reflected by the RSI reading in the 1H chart staying below 60 and tagging 30. In the 11/23 Europea session, the market pushed the RSI above 60, and price action above a projected triangle resistance.
As we have found resistance near 0.92, a throwback is anticipated. But if this throwback fails to break below 0.9160, the bullish breakout is still valid and a retest of the November high near 0.9230 is in sight. Above that a near-term target is the 0.93 handle, above which we are looking at a pivot zone in the 0.95-0.9520 area as the next resistance.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.