USD/CHF Currently Overvalued
December 7th, 2009 Posted in Technical Analysis
Name: Anton
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In last week trading, the USD/CHF experienced much bullishness, as it now stands at $1.0225. However; it seems that this trend may be coming to an end. I will illustrate below that the USD/CHF may very well be heading for a reversal. Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave.
• The technical indicators that are used are the William Percent Range, Relative Strength Index (RSI), and Slow Stochastic.
• Point 1: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 3: The Williams Percent Range has peaked at the 0 marker and has turned bearish; this means that there may actually be a strong level of downward pressure.
USD/CHF 4-Hour Chart
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Tags: dollar, Forex, forex blog, RSI, Slow Stochastic, Technical Analysis, USD, USD/CHF
