USDCHF Analysis: Bollinger Bands & Bull Markets
Solid ECN – The USDCHF trades sideways in a narrow range between 0.915 and 0.908. The 4-hour chart above shows that the Bollinger bands are also squeezed. The squeezed Bollinger bands can be interpreted as the market resting and waiting for economic updates from the central banks. It is worth noting that the Awesome Oscillator divergence signaled this correction or consolidation phase.
From a technical perspective, the USDCHF is in a bull market, trading inside a rising flag. The uptrend will likely continue if the price steps above the 0.915 resistance.
Conversely, the Ichimoku cloud, or the lower band of the flag, stands between the bull and bear markets. Should the price dip and stabilize itself below 0.906, the bull market would be invalidated, and the decline would aim for the 0.8991 mark.