By Greg Holden
The Swiss franc’s bullish run against most of its currency counterparts may begin to see corrective movement as the year comes to an end.
The influx of positive economic data out of the United States has begun to push many traders back into riskier assets and away from traditional safe-havens. Both the USD and CHF represent safe-havens in times of trouble, but the franc has been more so since the recent debt fallout across Europe began to plague other investments.
As such, the franc may be in a position to experience some moderate corrections over the next week or two as the year comes to an end.
As we can see from the chart below, this pair continues to move within a bearish trend, but technical indicators are suggesting that we may see upward movement in the immediate future.
The MACD shows clear bullish crosses and an ascending price pattern, both of which highlight growing upward momentum and pressure.
The Relative Strength Index (RSI) has recently entered the over-sold region on this pair, which supports this bullish notion.
After yesterday’s failed attempt to sustain a price above the 23.6% Fibonacci retracement line at 0.9600, this pair now looks poised for a second attempt. Now may be a good time to go long on the USD/CHF.
USD/CHF – 8-Hour Chart
Forex Market Analysis provided by ForexYard.
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