- USD/CHF has been heading towards the South.
- The pair may find its support around the last month’s low.
- The H1 chart looks bearish may consolidate soon.
- Intraday minor charts have been bearish.
USD/CHF- Technical Analysis-H4 Chart
The chart shows that the price has been heading towards the South with good momentum. Last week, the pair produced a massive bearish engulfing candle and drove the price towards the downside in the next candle as well. The first candle of this week closed as a bearish pin bar. As of writing, the price has been bearish again as expected. The sellers may add more short positions if the price breaches the last week’s lower low. The price may find its support around 0.89250.
On the contrary, if the price breaches the resistance at 0.89965, it may make a bullish correction. In that case, the sellers may wait for the price to produce a bearish reversal pattern around the SMA 30’s resistance to go short. If that happens, the pair may make a strong bearish move and land at the last month’s lower low.
Price Action Analysis- H1 Chart
The H1 chart shows that after being bearish, the price had a bounce around 0.89660. It made a bullish correction and found its resistance around 0.90000. Since then it has been bearish. However, the level of 0.89660 may hold the price as a support. Thus, the sellers may wait for the price to make a bearish breakout at the level to go short again in the pair. A price breach may drive the price towards 0.89375.
On the contrary, if level produces a bullish reversal pattern, the buyers may look to go long in the pair above 0.90000.
Considering both charts, it seems that the pair may get choppy or slightly bullish if the last week’s low works as a support. Nevertheless, it is more likely that the pair may remain bearish and make another bearish move.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn