Market NewsTechnical AnalysisUSD/CHF

USD/CHF: A Confluence Level is Ahead, Keep an Eye on the Pair

  • USD/CHF has been on a bullish correction looking for its resistance.
  • The level of 0.87200 may work as a flipped level of resistance on the H4 chart.
  • The H1 chart looks bullish trading around a flipped level of support.
USD/CHF H4 chart
USD/CHF H4 chart

USD/CHF – Technical Analysis- H4 chart

The chart shows that the price after being bearish had a bounce at 0.86300 and produced a bullish inside bar. The price, after producing some bearish corrective candles, headed towards the North to find its resistance. The simple moving average is not too far. Moreover, the level of 0.87200 may work as a level of resistance. Thus, the sellers may keep their eyes on the price action around that area, which may come out as a confluence level. If the area produces a bearish reversal pattern, the sellers may go short in the pair and drive it towards the South.

On the other hand, if the price beaches the horizontal level along with the SMA 30’s resistance, the buyers may take over and push it towards the North. The price may find its resistance around 0.87800.

USD/CHF H1 chart
USD/CHF H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has been heading towards the North gradually. It has been obeying a trend line as well. At the last bounce, it produced a double bottom and made a strong bullish move. The level of 0.87100 has been working as a resistance. The buyers may keep their eyes on the price action around the trend line’s support to look for long opportunities. A breakout above the level of 0.87100 may push the price towards 0.87450.

On the other hand, if the price breaches trend line’s support, the sellers may drive the price towards the downside. In that case, it may find its support at the last swing low again.

Considering both charts, it seems that the H1 chart may go either way. However, the H4 chart looks very bearish. Thus, the bear is slightly ahead here.

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

Contact and follow Tareq on Twitter: @tareqfpn

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