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USD/CHF On the Edge of a Break

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

The Swissy has been in the zone just below the 50.0 fib level of the previous move down for about seven weeks now and this looks like on the daily time frame that price is making a double top.

USD/CHF Weekly 11/22/11

On my naked daily chart it looks like price could very well double top then break below on of my trend lines and just keep diving from there.

USD/CHF Daily 11/22/11

On the 4 hour time frame my naked 4 hour chart displays a price channel that has been very respected several times previously and this is where I would watch for a downward break outside the price channel. At the time of this analysis, price is flat against the lower price channel. Price happens to be just under the ema's as well as the monthly R1 pivot which overlaps with the weekly M3 pivot and just below the daily M3.

USD/CHF 4 Hour 11/22/11

On the 4 hour time frame the ema's are bunched together and price is inside what looks like a developing Bollinger band tunnel indicating very low volatility. On the 1 hour chart price is also confined within a developing Bollinger band tunnel with the ema's all bunched up.

USD/CHF 1 Hour 11/22/11

Finally, on the 15 minute time frame price is making lower lows and lower highs and all together price to me looks very bearish for the Swissy.

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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