The old saying in the Market business “The trend is your friend” until it’s not!. For this reason it’s crucial for market participants to be on the lookout for trend changes even temporarily. Exchange USD/CHF currently exhibited this behavior.
- USD/CHF has broken above the blue trendline dominating the down trend since the US Dollar weakness began early April in the wake of the Global risk appetite.
- Morning star reversal pattern is now complete as the exchange rate restests the broken resistance.
- RSI(14) is currently holding above 50 which continues to emphasize the bullish theme surrounding the US dollar against the Swiss Franc.
GBP/CHF is a second currency pair for those looking to trade potential weakness in the Swiss Franc.
- GBP/CHF has spent the majority of 2020 trading within a well defined range(1.22131-1.16861).
- Market finally broke above the 1.22131 resistance level as the UK’s vaccination programme continues to boost optimism surrounding the British Pound.
- The pair trades comfortably above (20,50,100,200) SMAs while RSI approaches the overbought region (RSI,14,70).
GBP/CHF remains primed for continuation of bullish momentum in the British pound as 4HR RSI, Stochastics and MACD continue to rally.