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USD/CHF: Ichimoku analysis (Jan. 31)

Daily. The currency was consolidating during the past week under Kijun-sen. Bulls were trying hard to return to the recent levels, but the lower boundary of Ichimoku Cloud was another obstacle for them. Only at the end of the week the resistance line was broken and the pair rose rapidly to the Cloud’s top. But there is another barrier in the area of 0.9030 formed by Tenkan-sen. Therefore, it must be very difficult for the bulls to break higher. Pay attention to the fact that all the Indicator lines are horizontal, so the sideways movement is currently unfolding.

Chart. Daily USD/CHF

H4. At H4 the situation is for now uncertain as well. The bears decided not to continue their attacks, although the prices spent considerable time under Senkou Span B. During the whole week, the pair was consolidating just below 0.9000, but in the end the bulls became stronger and brought the prices to a positive area. Tenkan and Kijun formed a Golden Cross (2), but the Ichimoku Cloud turned bearish. This contradiction may soon make the market go back under the Cloud.

Chart. H4 USD/CHF

Tatyana Norkina, FBS analyst

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