USDCHF: weekly review (28/11)
Tatiana Norkina, analyst FBS
Daily. Last week the currency pair had to be adjusted to the support level of the daily Kijun-sen, after bulls had failed to update the November highs. However, the breakdown of the resistance level Tenkan gives them a chance for a speedy resumption of the uptrend. Indeed, the Ichimoku indicator is now set quite positive, and oscillators are going to turn up again.
If prices fixing above the Tenkan line does not happen, then we will expect the declining in rate to the upper boundary of the cloud.
Graph. Daily USD / CHF
H4. On four-hour graphs the pair is holding above the Ichimoku cloud. But the indicator status is staggered: the current dead cross formed by Tenkan and Kijun cloud is set to change in the underlying trend downward.
Therefore, the re-entry prices in the area of cloudiness will be treated as a desire to deepen the market correction. Securing over the Tenkan and Kijun lines is interpreted as the resumption of the uptrend.
Graph. H4 USD / CHF