USDCHF H4 – After the Swiss unpegged the Franc
On January 15th this year, when the Swiss National Bank (SNB) suddenly announced that it would no longer hold the Swiss franc at a fixed exchange rate with the euro, there was the biggest single-day move for this country’s currency in the last 40 years. Now let’s see how the Franc is doing in 10 months after this event.
Since May USDCHF movements have been limited by two lines: 1. Up-trendline which represented support for the prices (each next low is higher than previous one); 2. Resistance level (at 0.984) – it was a reversal point for the prices. Also this figure is known as ascending triangle. Each time Analytical Trader has detected strong signals near the up-trendline and weak signals near the resistance right before the price turned its direction.
Recently we had a break-out through the resistance. Then the price moved back to this resistance just to touch it and continue to move up (it happens very often when the resistance becomes support). In time of touching there was no big volume (it is called no-supply) and it means that professionals are not interested in down move – they are now bullish.
Now background is strong. The price is reaching two important long-term resistance levels: previous high and the price level which was valid before the SNB unpegged the franc. It will be interesting to watch price behavior near these levels. Look carefully for weak/strong signals and volume when the price is close to the resistances.