- USD/CHF has been choppy on the H4 chart.
- The pair trades below the simple moving average 30.
- A flipped level of resistance may play a significant part to determine its next trend.
- The H1 chart has been choppy.
USD/CHF- Technical Analysis-H4 Chart
The H4 chart shows that the price has found its support around 0.89000 and consolidated there for a while. Upon producing a bullish engulfing candle, it made a move towards the upside for one more candle. However, the price had a strong rejection at 0.89580 and produced a bearish engulfing candle as well. Nevertheless, the sellers have not been interested to drive the price towards the South. The price has been heading towards the North again.
The flipped level of resistance may play a vital role here. If it produces a bearish reversal candle, the sellers may drive the price towards the South below 0.89000. However, if the price breaches the resistance level, the pair may get bullish and head towards the North. In that case, the price may find its resistance around 0.90300.
Price Action Analysis-H1 Chart
The chart shows that it has been ranging within two horizontal levels. As of writing, the pair trades around the median line. Traders are to be very careful before making a trading decision on such price action. The sellers may wait for the price to reach at the resistance and produce a bearish reversal pattern to go short in the pair. The price may find its support around 0.89050.
On the other hand, if the price comes back to the support, the buyers may wait for the price to produce a bullish reversal pattern at the support to go long in the pair. Of course, they should consider taking profit out around 0.89580.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn