Forex Technical Update

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USD/CHF Daily Chart 8/16/2012 10:40AM EDT


The USD/CHF was rallying toward last Friday's (8/10) high at about 0.9810 and found resistance again during the 8/16 trading session. The 4H chart shows that as the market gets into 8/16 US trading, it is falling sharply from a declining trendline resistance.

Note that the 4H RSI did not break above 60, and therefore, the momentum bias in this time-frame is still bearish, especially if the reading falls back below 40.

As we look down, we see that this bearish outlook is just a near-term one, until we meet a rising trendline seen in the daily chart. The market is in congestion between 2 converging trendlines.

Clearing that trendline and 0.9660 opens up the 0.9420-0.9450 June lows. A break above 0.9810 however retains the bullish bias seen in the daily chart exposing the 0.9970 highs again.


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.