This pair has had a very bumpy ride since the Swiss central bank unpegged its currency, without giving a clear direction since recovering from its low when it was floated. On the day chart we can see price is extremely overbought and has been there for some time. The MACD has not shown new highs while price has been achieving new highs the past 3 weeks. This shows divergence between the trend indicator and market price, suggesting the rally is showing signs of weakness. On the weekly chart a resistance line can be drawn through the previous two highs, this week’s candle is getting very close to it. The MACD indicator here has been crossing above and below the MACD histogram for some weeks showing the lack of direction. I expect price to retreat from the resistance line. A break above it for this week would signal more upside price action.

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