Technical analysis of USDCHF dated 26.02.2014
USD/CHF was in a downtrend during the recent weeks that sellers were successful in obtaining the lowest price of 0.88513.Currently price in long term time frames such as monthly , weekly and daily is under 5-day moving average and warns more descending in long term interval.In the H4 time frame, right now, the descending trend of the price has been stopped when the price reached the blue supportive line and the it formed the third bottom price on this line. There are two candle pattern on this line, Hammer and Spining top, which are good proves of sellers’ defeat to reach the lower prices and then formation of a bottom price.
As it is obvious in the picture below, there is AB=CD harmonic pattern(also Butterfly Harmonic Pattern) with ratios of 61.8 and 127.2 between top price of 0.91561 and the bottom price of 0.88513 that warns about changing price direction from the D point of this pattern.Stoch indicator in daily time frame (also in 4H time frame) is in saturation sell area and with the next cycle warns about ascending of price during the next candles.Generally until the bottom price of 0.88513 is preserved, the price has the potential for ascending in this currency pair.
