USD/CHF Bears Show Short Term Fatigue

The USD/CHF chart has continued to grind lower during 2011, offering little reason to suggest a change in trend is due. There is now one small sign of bear fatigue, but further signs are required before a recovery is presumed.

• MONTHLY CHART Continued weakness has tested the credibility of support from around the bear channel base projection on the long term chart.
• DAILY CHART Note how a positive divergence has developed on the RSI indicator, the first sign that bears are temporarily tiring. However, recovery through the falling resistance line at 0.8830 is required, followed by a further push through possible resistance from the current 23.6% level at 0.9125, before a more lasting upmove will look underway.

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