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New All-Time High Likely For The Swiss Franc

USDCHF, USD/CHF, US dollar, Swiss franc, forex, forex market, forex trading, bearish pennant, ron acoba, hidden bearish divergence, daily forex picks

Hey guys! I’ve been away for several days now for a business trip in the Asia-Pacific but I’m back in the Forex front! So in today’s feature, I present to you the USDCHF pair. Just last week (March 17), the Swiss franc reached a new high against the US dollar when the USD/CHF pair fell to historical low of 0.8900. You see, the pair has been trading on a downward course since June 2010. A break down from a small rising wedge last March 14 was actually the one that set the swissy to its new record high. However, after reaching 0.8900, the USDCHF pair has rebounded sharply and is now exchanging above 0.9000 again.

Since reaching 0.8900, the pair appears to be forming a symmetrical triangle or even a bearish pennant pattern. In any case, a breakdown send the pair back down to at least 0.8900 again. A presence of a hidden bearish divergence, where the price registers lower highs and the stochastics make higher highs, also suggest a probable move lower. But since the conditions is not yet overbought, as indicated by the stochastics, it could trade sideways for a while or even rally a little before heading south.

One important thing to note is that the Swiss National Bank (SNB) is notorious in intervening in the forex market as it does not want the Swiss franc to appreciate so much against the likes of the USD and EUR. So better keep your heads up at all times.

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