USD/CHF: Ichimoku analysis (Feb. 21)
By Tatyana Norkina, FBS analyst
Daily. Over the past week the market situation has changed to bearish. Senkou Span A and Senkou Span B switched the Cloud to bearish after the pair renewed this year’s lows. The pair reached 0.8855 and began correcting upwards as the market was oversold: Chinkou Span is at the maximum distance from the price chart. Note that the dead cross is still in place (C). Therefore, after the correction and possible testing of the Tenkan-sen selling of the resumption of the currency pair will probably resume.
Chart. Daily USD/CHF
H4. At H4 we also see the power of bears: the Ichimoku Cloud has a wide range and bearish nature that can mean only one thing – the long-term sellers are serious enough. However, corrective recovery later in the week led to a break of resistance provided by Tenkan and Kijun. Perhaps the bulls will try to settle above these lines. In this case we’ll have to consolidate in the area from the current levels up the Cloud’s bottom.
Chart. H4 USD/CHF