USD/CHF: pair correction
Tatiana Norkina, FBS analyst
In the recent days, the US currency has lost significantly against the franc. After the highs formation, the correction began, which resulted in the pair's rate drop to the early December lows, into the 0.9650 area.
On the four-hour timeframe, the Ichimoku lines have formed a dead cross, while the cloud itself is getting narrow downwards. We are obvious to observe only correction at the moment, since the cloud is still bullish. But if the prices consolidate below the lower cloud border, more serious decline of the rate is possible into the 95th figure area.
Bearish sentiment is being captured by the oscillators as well. Thus, the MACD histogram has moved into the negative zone, while RSI keeps approaching the lower border of the channel.
Technical levels: support – 0.9600, 0.9635; resistance – 0.9680, 0.9730.
1. Sell — 0.9670; SL — 0.9690; TP1 — 0.9600; TP2 — 0.9520.