USD/CHF Technical Analysis October 14, 2011

The USD/CHF pair rose during most of the session on Thursday, only to fall back down. The result is a shooting star at the bottom of a recent fall. The candle could be a launching point for further weakness in this pair, as the USD finds itself on the back foot. The resulting set up is if the bottom of the candle gets broken – it should see lower prices. But with the Swiss National Bank working against the appreciation of the Franc, it is going to be very difficult to short this pair with any real conviction. Alternately, if the market breaks this candle to the upside – it is a very bullish signal, which we would be happy to get long on.

Leave a Reply

Your email address will not be published. Required fields are marked *