USD/CHF: Choppy Price Action on the H4

• USD/CHF gets trapped within a horizontal channel on the H4 chart.
• The H4 chart produced a bullish engulfing candle to start its trading week.
• The H1 chart seems to have found its resistance.
• Intraday minor charts seem to be bearish having rejection twice at today’s high.

USD/CHF – Technical Analysis- H4 Chart

The chart shows that the price gets caught within 0.88215-0.87900 for a while. Moreover, it has been traded around the simple moving average 30. The SMA 30 has not been able to produce any momentum yet. Thus, traders may keep an eye on those levels and the price action around them. A bullish breakout at the resistance may push the price towards the swing high. On the other hand, if the price breaches the support, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern at the value areas to go short in the pair. The price may find its support around 0.87000.

Price Action Analysis- H1 Chart

The H1 chart shows that the price had a rejection at 0.88215 several times. At the last rejection, it consolidated and produced a bearish engulfing candle. As of writing, the price seems to be bearish on the current H1 candle. The sellers may look to go short in the pair and drive it towards the South. It may find its next support around 0.87800.

On the contrary, if the price breaches the resistance, the buyers may wait for the chart to confirm the breakout followed by a bullish reversal pattern at the value area to go long in the pair. In that case, it may find its resistance around 0.88350.

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

Contact and follow Tareq on Twitter: @tareqfpn