Members login
USD/CHF Signals Bearish Continuation After Testing 0.8990
Written by article default Thursday, 21 April 2011 13:07
USD/CHFShort-Term to Medium Term
- The USD/CHF was knocking on the 0.8990 resistance and cracked it. However, it was not able to break through and a rejection at 0.90 pushed the pair down sharply.
- The RSI in the 4H chart remained below 60, reaching back towards 30, a bearish continuation sign. The structure of the market suggests we should have one more corrective rally before a stronger bearish swing to start another bearish impulse wave.
- The 0.8950 pivot holds resistance for a move back to the 0.90 resistance. This would be a flat correction scenario roughly between 0.90 and 0.89, and can take an abcde (5-wave) structure, so be patient.
- A confirmed break below 0.89 sees the record low at 0.8870 as a near-term challenge to the bearish outlook. A break below that targets at least the 0.87 level in the short-term. A more aggressive swing projection targets the 0.8425 level in the medium term.
