Forex Technical Update
USD/CHF Daily Chart 8/14/2012 10:45AM EDT
Recent price action in the USD/CHF suggests that the market has not picked a direction yet. It is held under a declining trendline since the 7/24 high at 0.9970. However, the trend in 2012 has been bullish, and we have a rising trendline since June's low at 0.9422. The daily chart shows the USD/CHF trading right in the middle.
The daily RSI also shows bullish bias, although the most recent reading is in the land of consolidation.
The breakouts from near-term patterns that we saw in the last USD/CHF for example, are insignificant in terms of direction in degree of the daily time-frame.
A break above the projected declining trendline will be needed to open up the 0.9970 2012 high. This scenario goes with the 2012-trend. However, a break below the rising trendline opens up the 0.9422 support, against the 2012 trend.
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.