USD/CHF Further Action to Downside Expected.

By: Doug Rosen

Starting out with the weekly chart, last week price came close to a 50.0 fib then dropped the entire week. The stochastics is still in the overbought zone so further decline is expected.



Moving over to the daily chart price has rolled over below the ema's and has fallen a tad below an ascending trend line and I do a complex top beginning to develop, this could be the beginning of a massive drop to the down side. It does appear as well that the lower Bollinger band is beginning to point downward.



On the 4 hour chart we are riding the ema's down with the 13 ema in control most of the time and the 21 stepping in when necessary. We are however, approaching last month's low overlapped with a 144 ema at 0.8917 with the weekly M2 at 0.8912 so we need to watch this area very carefully.



Meanwhile, on the hourly chart we are just coming up to the 21 ema overlapped with a fib of the recent swing low. Even though I do not put a lot of stock into the daily pivot point levels on Sunday Night/Monday Morning Trading, based on Fridays price action we just bounced off a daily M2 overlapped with a 144 ema. We have been making a series of lower highs and lower lows. So far, based on my analysis tonight the USD is weak. Read my other analysis on other pairs to determine what will be strong and pair the weak and strong currency's together.