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USD/CHF - Breakout in Either Direction Expected

By Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

By: Doug Rosen

Finally, it appears the USD/CHF is beginning to roll over a bit. On the weekly price is bouncing off the 55 and upper Bollinger Band and the stochastic is in the overbought zone. On the daily ema's are catching up with each other and angle and seperation is decreasing, the sign of lower speed and momentum. The upper Bollinger Band is pointing straight down and the daily stochastics is also in the overbought zone.

USD/CHF Daily Chart - September 28, 2011

Pivot Points: Price is heading back down and approaching the Monthly R2 being bolstered by the 4 hour 55 ema just a bit below as well as the lower 4 hour Bollinger band. Price has broken below the weekly central pivot point and has revisited it on a retest with the hourly 55 ema just a few pips above the weekly central pivot. Stochastic is also in the overbought zone.

USD/CHF Hourly Chart - September 28, 2011

Price is just above the daily central pivot point with the 15 minute 144 ema overlapped with the upper Bollinger band closing in on price, possibly forcing it back down below the daily central pivot point.

USD/CHF 15 Minute Chart - September 28, 2011

I believe price is at a level to where something needs to happen. Either a bounce up off the daily central or to be forced down from the weekly central pivot and hourly 55 ema and bear in mind we are up against a descending trend line.

Doug Rosen
About Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.
 

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