USD/CHF: Ichimoku analysis (Nov. 29)
Daily. This week there was a bearish development on the USD/CHF chart. The pair couldn’t overcome resistance of one of the weakest Indicator lines – Tenkan-sen. It also pointed to the bulls’ weakness. Almost during the whole week the pair was trading at the support provided by Kijun line in the 0.9070 area. But Kijun-sen isn’t able yet to keep the market from decline to the negative territory. The fix below this line, as well as under the Senkou Span A, may provoke a new wave of selling. However, non-standard intersection of the Senkou Span A and Senkou Span B and the Golden Cross could slow down the rapid depreciation. In addition, note that the bears still can’t break support at 0.9030.
Chart. Daily USD/CHF
H4. At the beginning of the week the pair has once again stumbled upon the Cloud top resistance at 0.9125. Here the bulls’ road was blocked by horizontal Kijun-sen. Rapid selloff from here made USD fall below the Ichimoku Cloud. Negative sentiment is confirmed by the Dead Cross (C). The Cloud also became bearish. In the near future the bears may break support at 0.9030 and continue the downtrend.
Chart. H4 USD/CHF
Tatyana Norkina, FBS analyst