USD/CHF: Ichimoku analysis (Nov. 22)
Daily. USD/CHF had to go back to the support line Kijun (KS), which formed a significant level at 0.9070. After testing this level, the pair immediately resumed the recovery and re-entered the Ichimoku Cloud. However, it should be noted that Tenkan-sen, Senkou Span A and Senkou Span B are still set to decline. Therefore, despite the golden cross (C) the prospects for the currency pair may be not so rosy. If in the coming days the bulls won’t be able to overcome the resistance of Tenkan-sen (TS) and, further, that of the Cloud top, then US dollar won’t recover to 0.9300 for a long time.
Chart. Daily USD/CHF
H4. On the H4 chart the upper limit of the Ichimoku Cloud also creates a problem for the bulls. Over the past week, they weren’t able to get into the positive region and gain a foothold on the Senkou Span A. Frustrated bulls pretty soon left the market, and the pair fell to the Tenkan and Kijun lines at 0.9130. However, these lines started to form a golden cross (C), which can have a positive impact on the market’s sentiment at the beginning of the next week.
Chart. H4 USD/CHF
Tatyana Norkina, FBS analyst