- USD/CHF consolidates around the SMA 30.
- Sellers may wait for a confirmed breakout to go short.
- The H1 chart looks choppy.
- Minor intraday charts are yet to find a direction.
USD/CHF-Technical Analysis-H4 Chart
The pair after making a good bearish move seems to consolidate around the simple moving average 30. A bullish reversal pattern at the sma 30 may push the price towards the North. A breakout above last week’s high may impose a strong bullish tone and end up making a new higher high. The price may find its next resistance around 0.90185.
On the downside, if the pair make a bearish breakout at the sma 30, the sellers may keep their eyes on the pair to go short upon having breakout confirmation. The price may find its next support around 0.88400.
Price Action Analysis-H1 Chart
The H1 chart shows that the price is caught within a bullish flag. At the last bounce, it produced a bullish inside bar and headed towards the North. The sellers may wait for the price to produce a bearish reversal pattern at the flag’s resistance to go short in the pair.
On the downside, if the chart makes a bearish breakout at the flag’s support, the sellers may wait for the breakout confirmation to go short in the pair. The chart suggests that the price may find its next support around 0.88800.
The H4 and the H1 chart look choppy. Traders are to be very patient and cautious before making any trading decision. To obtain better risk-reward, they must wait for the price to produce strong reversal pattern at the value area. It would be more lucrative if the price makes a bearish breakout and head towards the South. If that happens, the sellers will find some good entries with lucrative risk-reward.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn