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
- The USD/CHF has been very strong in February rallying from 0.9330 to 0.9780, 450 pips. The decline from 0.9780 has not even been a 38.2% retracement and the 0.96 level held as support.
- The RSI has broken above 70, and is now failing to break below 40. A break back above 60, should suggest bullish continuation, confirmed with a reading above 70.
- Did the USD/CHF just complete its correction, ready to head on the parity level?
- The downside risk before the market can clear the 0.9780 top is still 0.95 area, 61.8% retracement.
- However, price action suggests a start of a bullish attempt with the parity level in sight. In the near-term let's how the market reacts around 0.9780. If the market rallies above that, the 1.0, parity level is next.
- The daily chart continues to show the market flattening and threatening a rally within the context of this flattened sideways action, which has a bearish bias. However, the momentum is starting to shift, and the current and second corrective wave above the 0.98 level can extend to 1.0, and maybe even 1.010.
Has the USD/CHF completed its throwback, ready to rally to 1.0? We would love to hear what you think.