By: Doug Rosen
USD/CHF pair continues its bullish drive up and continues to look bullish, however, we have reached bearish fib levels that may start to give price a stronger fight than what we have been experiencing until now.
Price could keep climbing its way to 1.1700 but until it reaches that area it could be pulling back at each and every fib level along the way. I do see that price could pull back to the 0.8940 but it doesn't have to.
On the weekly chart price has been riding the 5 ema and the upper Bollinger Band is open and pointing up and the 5 ema has crossed above the 21 ema, very bullish in nature, yet Stochastics is in the oversold zone and there is a space between the 5 ema and current price action so a pullback may be presenting itself.
Moving over to the daily chart price is also riding the 5 ema upward and on this chart there is very little evidence that the USD will be getting weak anytime soon. Pullbacks are always expected in any market condition.
Price has broken the monthly R2 Pivot Point and has broken and pulled back to the weekly R2 as well. It is hovering around the daily Central Pivot. On the 4 hour chart we have been riding the 5 ema up, on the hourly chart we have made a pullback and just a bit above the 55 ema and on the 15 minute chart and have landed and bounced off the 144 ema.
This pair continues to look bullish and I expect the USD strength to continue, but like I said earlier, we have reached longer term fib levels that may attract bears as well as profit taking bulls adding to occasional pullbacks.