It’s very likely that the intraday USD/CHF has found a sideways range to trade within as the Asian session approaches. The current market cycles on the 15, 3, and even 60-minute time frames indicate that the small move lower during today’s trading session – as the Swiss franc gained on the U.S. dollar – leveled the short-term time frames out as the 240-minute and daily charts remain range-bound.
The Forecast range from the previous pattern breakdown of the Descending Triangle is offering a textbook example of what it means for prior resistance to become support. The initial move higher to the Forecast area between 1.0456 and 1.0470 was resistance late in the session on July 22 and again on July 23. During the Monday trading session prices rested on this same area as support after prices pulled back from a double top along 1.0560.
The three-bar Initial Trend reading confirms that the 30-minute chart has quieted down to a sideways range further placing importance on the Forecast area as a line in the sane between the bullish sentiment above and the bearish sentiment below. Considering this confirms my flat 34EMA Wave angle and prices have settled into a area that the bulls and bears are gong to fight it out at.
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