By Russell Glaser – Following a dramatic downtrend for the USD/CHF, the pair has been caught in a range trading environment. This provides an opportunity to short the USD/CHF between two previously tested support and resistance levels.
The USD/CHF is consolidating from the previous bearish trend that occurred from June until July. Prices for the pair have been found consistently trading between the 61.8% and the 76.4% Fibonacci retracement from the last bullish trend the pair experienced during the period of November 2009 until the height at 1.1729 in June of this year.
The Slow Stochastic oscillator is in the midst of forming a bearish cross, indicating the next move may be to the downside.
The 7-day Momentum indicator is downward sloping and is approaching the 100 level. A move below the 100 line will confirm the sell signal.
Traders can use this range trading environment to enter short on the USD/CHF with a target near the lower Fibonacci level at the price of 1.0350.
Should the pair breakout above the 61.8% Fibonacci retracement level, a protective stop should be placed at the daily high from July 12th at 1.0675.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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