Friday, March 19, 2010

The Swiss Franc - Bearish Technicals

Since last November, The Swiss Franc has been making a series of lower highs and lower lows which means the trend on this time frame is down. It appears to me that the Swiss franc is in the process of establishing a short term top based on the way I interpret the current technicals.

In the above chart you'll notice this currency tested a very significant resistance level and was unable to break through. The stochastics are also in the overbought area which means we should be looking for sell signals.

In my opinion, if the Swiss franc can take out the low of the past 5 trading days, that would confirm a sell signal and we should expect lower prices for this currency in the coming days. A move above the resistance zone would negate the bearish forecast.

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