- The pair has been choppy in the H4 chart
- Traders are to be patient to find its next direction
- The H1 chart had a rejection at 0.87785 today
- Today’s high may play a significant role in its next direction
USD/CHF the H4 Chart Trades within a Channel
The pair produced a bullish candle in the weekly chart. However, it closed within the second last week’s higher high. The H4 chart shows that the pair trades within a Parallel Channel. As of writing, the price is at the resistance of that channel. A bullish breakout at 0.87800 may push the price towards the North. The price may find its next resistance around 0.88800. On the other hand, if the price comes down and makes a bearish breakout at 0.87000, the sellers may keep their eyes to go short in the pair and drive the price towards the South. Simple Moving Average 30 has been flat for a while. It suggests that traders are to be very patient to find its next direction.
Keep an Eye on Today’s High
As expected, the H1 chart has been choppy as well. The price had a rejection around 0.87785 earlier today and made a bearish move. As of writing, the pair seems to have found its intraday support at 0.87550. Friday’s intraday price action had reacted at the same level. Thus, the level may hold the price as a level of support and push it towards the North. If the price finds its resistance at today’s high again, the pair may make a good bearish move and head towards the South. It may find its next support around 0.87000. On the other hand, if the price makes a bullish breakout at 0.87785, the price may find its next resistance around 0.88120.
Considering these two charts, it seems that the pair is indecisive about its next direction. Traders are to be very patient in such price action. However, they may keep their eyes in the pair for the next breakout, which may determine its trend for some days.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn