USD/CHF – Rising Channel vs. Falling Channel

by Admin

USD/CHF 4H chart 2/25/2013 8:25AM EST


Rising channel: The 4H USD/CHF chart shows a market pushing USD/CHF up in a rising channel since the beginning of February. It has rallied from 0.9021 to 0.9331. However, it is starting this week with a dip below 0.93 and a test of the rising channel support to start the 2/25 US session. A break below the channel by falling below 0.92, and a fall of the 4H RSI below 40 would suggest a change of dynamic, away from the rising channel.

Falling channel: The daily chart shows a market in a falling channel since October 2012. In this perspective a break of the rising channel is a bearish continuation signal that puts the focus back on the 0.9021 low and the 0.90 handle. A less aggressive target could be the 0.9080-0.91 area.

At this point, a hold above 0.92, and a push back above 0.9331 high would signal a bullish breakout from the falling channel, with focus first on 0.9380 resistance area, and then the 0.9511 resistance pivot, and top of the channel.

USD/CHF Daily chart 2/25/2013 8:33AM EST