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
Previous: Forex Notes (2/23)
- USD/CHF broke below 0.93 today with strong price action.The RSI remained mostly below 60, and is now about to kiss 30 reflecting bearish continuation.
- 3 projections are shown. There is a swing projection from a while back that has yet to be satisfied, and will be at 0.89. There is a short-term swing projection, of the December decline, from the 0.9750 resistance to slightly below 0.90. Finally, a channel breakout projection, taking the 450 pip width between the 0.9750 and 0.93 channel, and projecting it south from 0.93, we have 0.8850.
- Therefore, the 0.89 area is in sight for this breakout if it continues.
- A pullback should not break back above the middle of the broken channel, which is at 0.9525.
- The 4H chart shows that a pullback should be imminent given the oversold conditions shown by the RSI.
- However, this deep oversold reading is also a sign of strong bearish momentum, so we should expect a followup decline after a pullback. We mentioned it should respect 0.9525. However, with such strong bearish momentum, a pullback might not make it above 0.9415 before topping.
Will there be a pullback to confirm this bearish intent? We would love to hear what you think.
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