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.
[For the complete and illustrated version of this and future Updates be sure to sign up at www.sevendaysahead.com]
