- USD/CHF has been bullish on the H4 chart trading around a flipped resistance.
- The pair is traded above the simple moving average 30.
- The H1 chart suggests that it has found its support after making a bearish correction.
USD/CHF – Technical Analysis- H4 chart
The chart shows that the price upon producing a double bottom has been heading towards the North. On its way, it has made a breakout at the Simple Moving Average 30’s resistance. As of writing, the pair trades well above the SMA 30. However, it is traded around the level of 0.88200, which is a significant level of resistance. The price reacted at this level several times. Thus, the buyers may wait for the price to make a breach at the level to go long again. A breakout at the level may push the price towards the level of 0.89000.
On the downside, if the level continues to work as resistance and ends up producing a bearish reversal pattern, the sellers may look to go short below the SMA 30’s support. In that case, it may find its next support around 0.86650.
Price Action Analysis- H1 Chart
The chart shows that the price after being bullish had a rejection at 0.88200. It then made a bearish correction. As expected, the level of 0.87900 has held the price as a level of support. The pair produced a spinning top followed by a another one. The buyers since then, has been pushing the price towards the North gradually. The pair may find its resistance again around 0.88200.
A breakout above the level may generate more buying momentum. The price may find its next resistance around 0.88450.
On the contrary, if the level works as a resistance and produces a bearish reversal pattern, the pair may get sluggish or bearish. The sellers may be cautious before making any short decisions since all other parameters are bullish biased.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn