Forex Technical Update
The USD/CHF is seen in the 4H chart in sideways action, trading upwards since finding support at 0.9088. Before this, consolidation range, which has resistance at 0.9262, the market has been bearish, falling from 0.9593. (Before that, the market has been bullish from 0.7065). The market is thus now, threatening to break into corrective rally against the prior bear run, but also possibly breaking into bullish continuation of the larger scale bull run.
The bullish target above 0.9262, taking the width of the range projected into the direction the breakout, would target somewhere near 61.8% retracement, around 0.94. Indeed 0.94 is an important pivot, holding consolidation support in January until it broke and opened up the bear run down to 0.9188.
Some clues of failure would be the RSI not reaching 70, and price unable to break above the 200 simple moving average in the 4H chart, leading to a break back below 0.92. This type of rejection would suggest weak bullish attempt, and a bearish one to retest 0.9088 as well as a pivot at 0.9055. A break below 0.9050 would target the 200 day moving average near 0.8770.
This analysis is of a snapshot of the market and the anticipation based on the current conditions. Things may change, and adjustments are often needed especially when preparing for a trade. To follow up and explore trading plans and risk management techniques as well as fundamental bias and event risks, don't miss IBTrade's daily Market Intelligence Briefings live at 8:00AM EST throughout the week. To gain free access to these sessions, register at here at IBTrade. You will receive and email with the link and password before each session once you have registered.
Fan Yang CMT is the Chief Technical Strategist for IBTRADE, a trader, educator and a main contributor 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.