USD/CHF: Ichimoku analysis (Dec. 20)
Daily. Last week currency pair found support in the 0.8850 area. A"double bottom" was formed on the daily chart and the bulls used it to turn the greenback up. Note the pair was oversold and this contributed to the bullish sentiment. Despite the bearish character of the indicator, the bulls tested resistance of Kijun-sen (KS). A short-term recoil down from here towards the Tenkan-sen in the 0.8915 region looks possible.
Chart. Daily USD/CHF
H4. At H4 the pair broke into the Cloud after some consolidation under the lower border of the Ichimoku Cloud. This breakthrough was rapid and by the end of the week the currency pair reached 0.9000. This is actually bad for the bulls. A sharp increase has led to an overbought market. Also, just above the 0.9000 figure there is a strong resistance level, formed by the upper boundary of the cloud. Consequently, in the near future we expect the pair to turn down from these levels.
Chart. H4 USD/CHF
Tatyana Norkina, FBS analyst