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USD/CHF Trading Between Converging Trendlines

The 1H USD/CHF chart shows a pair that is at the crossroad. CHF is positive correlated to EUR, so EUR/USD and USD/CHF are usually upside-down mirror images. Today, as the EUR/USD bounced off support towards resistance, USD/CHF retreated from resistance to test support.

(usdchf 1H chart, 6/23)

If USD/HF breaks below 0.8940, it opens up the 0.8910 low from last week. This would extend last week's bearish development. In this scenario, the 1H RSI should break below 40. Only a break below 0.89 should extend this bearish scenario outside of the short-term because it would create topping in the 4H chart shown below.

However, if the RSI holds above 40, price still has some bullish momentum from the end of last week's rally, and the focus might back back towards last week's highs around 0.8970, which would also challenge the falling trendline from last week's high. A break above that opens up the 0.90-0.9013 highs from last week.

(usdchf 4H chart, 6/23)