By Yan Petters – Starting on yesterday, the CAD/CHF pair seems to be very stabile, perhaps too stabile. The pair, which was on a straight uptrend, appears to linger around the 1.0000 level. However, several indications claim that turmoil could be impending.
• The chart below is the CAD/CHF 4-hour chart.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OaMA and the Relative Strength Index (RSI).
• The Slow Stochastic is crossing, very close to the 50 line. This indicates that the market is accepting the current price.
• The MACD also looks to show a cross, and in a midpoint location as well.
• The RSI shows same indications as it’s been ranging near the 60 line for a while now.
• In addition, the doji formation of the last candle-stick suggests that the market is about to shake. Usually when a dojy takes place, it is followed by a sharp movement.
• A potential time-frame for the turmoil is at 15:30 GMT. Make sure you don’t miss the opportunity, should it take place.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
