24.03.201403:58 Forex Analysis & Reviews: Technical analysis of USD/CHF for March 24, 2014

Long-term review

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USD/CHF has been forming an ending diagonal for months. So will it finally break out of the pattern? It will make one more attempt to do so as short-term momentum is back in buy mode after multiple divergences in the RSI. Above 0.887, it will go to the upper line at 0.8985. A close above 0.8985 would break the falling wedge upwards for more medium term gains.

Intraday- long only above 0.8830

In the H4 chart, RSI is giving a sell signal. The pair formed a resistance level at 0.8869 on Thursday. Today, the pair is facing resistance at 50SMA in H1 chart and 23.6 fib level in H4 chart. Intraday pullback will be possible if the pair trades above the 0.8830 level, we will see 0.8869 and 0.8895 immediately. The support exists at 0.8806 (38.2 fib), 0.8791, and 0.8766 (61.8fib). The pair will be in a rough way, if it breaks the 0.8766 and it will drift towards 0.8704 and 0.8699.

S1 0.8819 R1 0.8830

S2 0.8790 R2 0.8869

S3 0.8766 R3 0.8895

Positional- Thumbs up if close above 0.8945 level.

In the weekly chart, the RSI and stochastic indicators are giving a buy signal. So we can confirm that buying program is the best strategy for this pair in the medium term towards upside target 0.8945, above that 0.9048 and 0.9156-0.9164. We will update further targets when the pair trades/close above the 0.8945 level (21EMA, weekly chart). On the downside, 0.8714-0.8699 is the support.

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