USD/CHF: Ichimoku analysis (May 30)
Tatyana Norkina, FBS analyst
Daily. Last week the currency pair rose moderately to the area of strong resistance at 0.8975. It’s difficult for the bulls to break higher without a corrective decline. Note that the market is still overbought. Therefore, despite the relatively strong bullish indicator in the near future we should expect depreciation of the pair to the Tenkan-Kijun channel.
Chart. Daily USD/CHF
H4. At H4 as well there are no changes compared to the previous week. The Ichimoku indicator is still on the buyers’ side. Ichimoku Cloud is gradually expanding upwards and Tenkan and Kijun formed another Golden Cross (C), which can support new purchases of the currency pair. But it will be a short-term burst of activity from the bulls. Then there may be a full-blown correction.
Chart. H4 USD/CHF