USDCHF- Consolidates, Vulnerable.

[FXTechstrategyTeam]

USDCHF: With USDCHF vulnerable on corrective weakness, it may see further downside in the new week. However, if this fails to occur, expect the pair to recapture the 0.9566 level. A cut through here will mean further upside offensive towards the 0.9773 level, its weekly ema. Further out, resistance stands at the 0.9850 level. Conversely, support lies at the 0.9388 level where a reversal of roles is likely to occur and turn the pair higher. On the other hand, if broken additional weakness will aim at the 0.9300 level and then the 0.9184 level where a violation will turn attention to the 0.9100 level. On the whole, the pair continues to hold on to its broader upside offensive.

[autotrader1]

USD/CHF DAILY as of Sunday, 24 March, 2013

A Daily black body has formed (because prices closed lower than they opened).

For the past 10 Daily candlestick bars as of 22/03/2013, there are 4 white candles versus 6 black candles with a net of 2 black candles.

For the past 50 Daily candlestick bars as of 22/03/2013, there are 24 white candles versus 26 black candles with a net of 2 black candles.

A Daily engulfing bearish line has formed (where a black candle's real body completely contains the previous white candle's real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with US Dollar / Swiss Franc). It signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle's real body.