After USD/CHF broke out below the pennant the pair had formed it fell with about 500 pips without meeting any serious support – from 0.96833 to 0.91872. That is especially obvious on the D1 time frame.
I expect that in the next few weeks and months the pair will rise to test the trend line it broke out below at 0.95 or even around 1.0 – 1.01. It is possible that test to continue throughout the year before the depreciation continues.
From a purely technical analysis point of view, if the limit of that pennant is reached then in the long term the USD could fall with close to 3000 pips. That is, if the Swiss Bank allows it.
On the daily seems to have made an inverted head and shoulders pattern.
ReplyDeleteI'll watch those levels, thank you.
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteI fully agree with your assessment.
ReplyDeleteGood insight.
ReplyDeleteGood post!
ReplyDelete