By Yan Petters
The USD/CHF pair saw a sharp drop of 220 pips during last week’s trading session. However, it saw a technical correction just before the weekend, and as a result climbed from the 0.9500 level to as high as the 0.9665 level. Nevertheless, several technical indications are now suggesting that the bearish trend is back on. A new bearish move has a great potential to take the pair to a historical low level of 0.9460.
• The chart below is the USD/CHF 4-hour chart by ForexYard.
• It can be seen that the pair had several failed attempts to breach through the 0.9650 level.
• After failing to cross the 0.9650 level, the pair is now once again showing signs of bearishness, and is currently trading near the 0.9590 level.
• A bearish cross of the Slow Stochastic has taken place above the 80-line recently, strongly suggesting that a downtrend is impending.
• In addition, the RSI fell below the 70-line today, further indicating that a bearish movement should be expected. The last time that the RSI fell below the 70-line has triggered a 400 pip drop.
• The pair’s next support levels are located at the 0.9555, 0.9500 and 0.9460 levels.
• The 0.9460 level is an ALL-TIME LOW. Traders should take under consideration that should the pair reach this low, it can potentially create a psychological affect that will push it down even further.
• The next resistance levels are at: 0.9650, 0.9735 and 0.9790.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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