USD/CHF: Ichimoku analysis (May 23)
Tatyana Norkina, FBS
Daily. The currency pair continues moderate recovery. Last week the pair returned to the recent highs in the 0.8950 area, the bulls can’t act in full force as the market’s overbought. Indeed, now Chinkou Span shows that the pair’s maximum overbought, so we should expect a corrective decline soon. This can happen even after prices make a bounce to the area of strong resistance 0.8975 .
Chart. Daily USD/CHF
H4. At H4 the pair used support of the Ichimoku Cloud top for the resumption of growth. However, the proximity of the last week highs makes market participants cautious. While there is a consolidation in prices above Tenkan and Kijun, the latter have already started forming a positive cross. The probability of breaking above the current peaks is now high.
Chart. H4 USD/CHF