Forex Technical Update
USD/CHF 1H Chart 7/16/2012 8:55AM EDT
After Friday's sharp drop, the USD/CHf still maintains bullish momentum in the 1H chart as the RSI reading failed to sustain a break below 40. Instead it only briefly cracked 40, and returned above 60, reflecting persistence in bullish momentum, as it has shown since the beginning of July. Price action also remains bullish with a higher low, and a pending higher high if the market continues to rally above 0.9870.
There was a dip after the 8:30AM EDT retail sales and manufacturing data. The data was mixed, with disappointing retail sales data for June, but a slightly improved manufacturing index reading for July, but we are seeing the USD pressured across the board WITHOUT risk-on dynamic.
The ability to remain above 0.98 can be indicative of bulls being in charge, however, a break below 0.9790 blurs the bullish outlook, suggesting a sideways market if not a reversal.
July's bullish price action has exposed the parity level as noted in an earlier USD/CHF update.
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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