While the USD/CHF scored a lower high yesterday, the MACD indicator – blue line on our Daily Snapshot chart – is diverging with December 2011 high. The downside MACD cross is in place now – the blue line below the white one – warns an intermediate high has been achieved. The long-term picture still favors higher price for USD/CHF; however, the upside pivot level on Dow Theory lies at 0.86 - leaving quite some range for a decent correction before the upside trend resumes – we expect a move back to 0.9250 region.

This move could have an effect on EUR/CHF cross, pressuring price toward the SNB’s taboo 1.20 level. What about the stop-losses below this level, will they impact the liquidity of USD/CHF with many participants having place safe stops below the 1.20.

Have a successful trading day.
Best regards
FAMC Ltd
forex-analysisblog.com

Do you see a brief upward correction before that move down to .92000 on USDCHF?

new here
Buy at 0.8936
Take profit* at 0.8988
Stop loss at 0.8918

Intraday bias in USD/CHF remains on the upside for 0.9300 resistance. As noted before, fall from 0.9594 has likely completed with three waves down to 0.8930 already. Break of 0.9300 will confirm the bullish case and target a test on 0.9594. Also, the corrective three wave structure of the fall from 0.9594 to 0.8930 in turn argue that whole rally from 0.7065 is still in progress.

Sell at 0.9211
Take profit* at 0.9152
Stop loss at 0.9232