USD / CHF: weekly review (05/12)
Tatiana Norkina, analyst at FBS
Currency pair has reached new heights during last week. Two-month breakdown of resistance in the 97th figure area was accompanied by testing of new levels in the 98th figure area. However, excessive overbought does not allow the bulls to unfold fully. Just after updating of extremums there followed sharp depreciation to support area of Tenkan and Kijun lines. The candle chart showed formation of "bearish engulfing" at the same time. Consolidation above 0.9700 will be considered as a signal for the resumption of the uptrend.
Chart. Daily USD/CHF
H4. Currency pair finally fixed above the Ichimoku cloud at four-hour lines but by the end of the week there happened depreciation to Tenkan and Kijun lines, which keep the pair above the mentioned figure. The situation is positive, the pair may consolidate at current levels and continue to grow thereafter.
Chart. H4 USD/CHF