Technical analysis of USD/CHF dated 22.10.2012
USD/CHF in its descending by reaching to the level of 0.92114 has been stopped and has formed a supportive bottom. Right now the price in its ascending trend has reached to descending trend line and has stopped as it is obvious in the picture below. Despite the fact that descending trend line in 09.10.2012 had been broken once and the price passed that level, but it preserved its property. The price in its ascending trend and reaching to descending trend line recorded a resistance top of 0.92886 which is obvious in 4H time frame.
Stoch indicator is in the same direction with the formed bottom in the price chart in daily time frame and shows the possibility of ascend in price according to the next cycles. RSE indicator is in divergence mode with the price chart which shows the possibility of formation of a bottom price for ascending. The most important sign for ascending and ending of descending trends is the formation of a bottom price in 4H time frame and finally breaking of the descending trend line and resistance level of 0.92886 in the second stage.
FxGlory
2012.10.22