USD/CHF Daily Chart 8/14/2012 10:45AM EDT
Recent price action in the USD/CHF suggests that the market has not picked a direction yet. It is held under a declining trendline since the 7/24 high at 0.9970. However, the trend in 2012 has been bullish, and we have a rising trendline since June’s low at 0.9422. The daily chart shows the USD/CHF trading right in the middle.
The daily RSI also shows bullish bias, although the most recent reading is in the land of consolidation.
The breakouts from near-term patterns that we saw in the last USD/CHF for example, are insignificant in terms of direction in degree of the daily time-frame.
A break above the projected declining trendline will be needed to open up the 0.9970 2012 high. This scenario goes with the 2012-trend. However, a break below the rising trendline opens up the 0.9422 support, against the 2012 trend.