Forex Technical Update
The 1H USD/CHF chart shows a market after a completed ABC correction with C=A wave equality. The RSI reading shows a loss of bullish momentum when it dipped below 30, however its ability to push back above 60 now suggests the bearish momentum started by the ABC correction. Overall, we can say the market is now trading sideways, but with a possible bullish bias as it trades above the 200 period simple moving average.
On a pending throwback, the bullish bias becomes apparent if the market is supported above 0.9025. This would support development of bullish structure. Then, if the market clears the pivots right under 0.91, we open up the high near 0.9150. A slightly more aggressive bullish outlook targets 0.9180, the swing projection seen in the 4H chart as per suggestion by a positive reversal signal (lower RSI low, higher price low).
If the 0.9025 level fails to provide support, a slide lower below 0.90 opens up the 0.8950-0.8960 area as an important level of support near the most recent swing low, and also the 200SMA in both the 1H and 4H charts.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.