USD/CHF: Ichimoku analysis (Jan. 10)
Daily. Last week the pair rose above December highs and recovered to the levels above 0.9100. The maximum of the current year and week is set at 0.9125. However, the path to further growth is blocked by the lines of the Ichimoku Cloud. The bulls haven’t been able to overcome the resistance of Senkou Span A and B and decided to abandon longs. This led to the depreciation of the currency pair in the second half of the week to around 0.9060. And, most likely, this is not all – the bears may continue pulling the prices down to Tenkan and Kijun. Ichimoku is now configured in different directions. The recovery is obviously only corrective in nature.
Chart. Daily USD/CHF
H4. At the H4 the pair also tested resistance formed by the upper boundary of the Cloud in the 0.9125/30 area. And, although the bullish trend remains relevant in the coming days, the pair is likely to decline to the top of the Cloud. Note that all the indicator lines are directed sideways. It also points to the possibility of corrective decline after two weeks of growth.
Chart. H4 USD/CHF
Tatyana Norkina, FBS analyst