USD/CHF Weekly Prognosis

After some stormy price actions and tieback, USD/CHF is still trading well within inner rising channel and thus, rise from 1.0366 is still progress. 1St bias rests on the upside this calendar calendar calendar calendar week. Break of 1.1714 resistance will bring further rally to retest 1.2248/96 resistance zone. On the downside, at the same time, below 1.1402 minor hold will advise that fall from 1.1714 is still in progress. importantly, this will argue that rebound from 1.0366 has accomplished and deeper diminution could be found out to 1.0864 cluster maintain next.

In the bigger picture, present favored interpretation is that medium term rise from 0.9634 has topped at 1.2248 orthodox top rather than 1.2296. In other words, 3 wave structure of the fall from 1.2258 to 1.0366 argues that it's merely a correction in the medium term up trend. Rise from 1.0366 should at present extend to retest 1.2248/2296. At The Same Time, decisive break of the resistance zone is required to approve resumption of medium term rise from 0.9634. Otherwise, some large scale integration could be found out, with risk of another try of 1.0366 before up trend resumption. Below 1.0864 will bring another down leg of the integration to 1.0366 and below.

In the longer term picture, the prospect is rather mixed for the instant. A long term bottom is no doubt in place at 0.9634 with bullish convergence condition in daily MACD. At The Same Time, USD/CHF is still maintaining the pattern of lower highs (1.8305, 1.3283, 1.2296) and failed to sustain above 55 months EMA. We're prefer to wait for at least some sustained trading above the 55 months EMA before committing to the bullish prospect.

Based on ActionForex.com Technical Prospect