USD/CHF: Choppy Price Action, Be Patient

• USD/CHF has been choppy on the H4 chart for a while.
• The pair trades above the SMA 30, but has not produced any momentum.
• The H1 chart has found its resistance at a bearish trend line.
• Intraday minor charts have been bullish biased.

USD/CHF – Technical Analysis- H4 Chart

The chart shows that the price consolidated around the SMA 30 for a while. The buyers may be eagerly waiting to go long in the pair upon having a bullish signal. If that happens, the price may head towards the North and find its next resistance around 0.86300.

On the contrary, if the price breaches the SMA 30 and confirms the breakout, the sellers may go short in the pair and drive it towards the swing low. The chart shows that the price has enough space to travel towards the South. It suggests a bearish breakout may created enough momentum.

Price Action Analysis- H1 Chart

The chart shows that the price made a bearish move by having its second rejection at a trend line. Upon making a breakout, it made a bullish correction. The trend line’s resistance produced another bearish signal and drove the price towards the South. As of writing, the price is having correction on the minor charts. A bearish reversal candle may attract the sellers to go short in the pair and drive it towards 0.84800.

On the contrary, a bullish breakout at the trendline’s resistance may push the price towards the North. The price may find its next resistance around 0.85650. A breakout above the level may make it more bullish and the pair may remain bullish for some days.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn