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USD/CHF Bearish Price Action 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

This pair has been bearish for the last couple weeks and I think this bearishness will continue this week. A brief look at the weekly chart displays that the stochastic is in the overbought zone and that the 5 ema is coming down, approaching the other ema's and a crossover could be imminent. Moving over to the daily chart price is heading up a bit and I suspect this is just a retracement. The 13 ema has crossed below the 233 and 21 ema's. A visit to those ema's would coincide with the 50.0 fib of the previous swing down.

USD/CHF Daily Chart 10/31/11

Moving on to the 4 hour monthly pivot chart I can see we are fibbing from the recent swing down and the M0 at 0.8764 does overlap with the 61.8 fib zone.

USD/CHF 4 Hour Chart 10/31/11

Moving on to the hourly weekly pivot chart price has bounced down from the weekly M3 at 0.8748 and the stochastic is in the overbought zone with the 144 ema heading down towards price.

USD/CHF 1 Hour Chart 10/31/11

Finally, looking at the 15 minute daily pivot chart price is way outside the highest resistance levels, beyond the daily R3 even with a stochastic crossing down in the overbought zone and I am thinking that price has to roll over and I expect that it will start soon. I am watching for USD weakness.

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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