- The pair gets trapped within a parallel channel
- Simple Moving Average 30 has been bullish-flat
- Intraday price action has been choppy
- Intraday sellers may look to go short in minor frames
USD/CHF: Price Gets Caught within a Channel
The H4 chart shows that the pair after making a strong bullish move, gets trapped within a bullish parallel channel. It has been heading towards the North gradually. The price had rejection twice at the channel’s resistance. As of writing, it has been slightly bearish upon having its third rejection. Simple Moving Average 30 has been a support. However, the price has not reacted around Simple Moving Average 30 that much. H4 traders may wait for the price to make a bullish breakout at channel’s resistance to go long. On the down side, a bearish breakout at the channel’s support may drive the price towards the South. Considering the H4 chart, the Bear has more space to travel towards the South. This has put the Bear a bit ahead of the Bull here. Let us wait and watch in which direction it makes its next breakout.
A Flipped Level of Support Holds the Price
The H1 chart shows that the pair had a bounce at 0.8825 twice. It is a flipped level of support, where the price reacted earlier as well. The buyers may look to go long on minor charts as long as the level holds the price as a level of support. The price may find its next resistance around 0.88700. On the downside, if the price makes a bearish breakout at 0.88250, it may make a strong bearish move and head towards the South with good momentum. It may find its next support around 0.87750.
The H4 chart looks very choppy but offer more space towards the downsdie. The H1 chart looks bullish but it offers more space towards the South as well. In a nutshell, it is a pair where traders are to be very cautious before making any trading decision based on the H4 and the H1 chart.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn