Market NewsTechnical AnalysisUSD/CHF

USD/CHF: Double Bottom’s Support May Change the Long-Lasting Trend

  • USD/CHF has been bearish on the H4 chart trading around the swing low.
  • The pair has found its resistance at the SMA 30 and produced a bearish engulfing candle.
  • The H1 chart is consolidating after making a bullish move.
  • Intraday minor charts have been choppy.
USD/CHF H4 chart
USD/CHF H4 chart

USD/CHF – Technical Analysis- H4 chart

The chart shows that the price produced a bearish engulfing candle right at the simple moving average’s resistance. The next candle came out as another one. However, it has found its support at 0.86830. A bullish reversal pattern followed by a breakout at the SMA 30’s resistance may push the price towards the North.

On the other hand, if the price breaches the horizontal support, the sellers may be interested to go short in the pair again and drive the price towards the South. The price may find its support around 0.85700.

USD/CHF H1 chart
USD/CHF H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price produces a double bottom. At the second bounce, it produced a bullish engulfing candle and headed towards the North with one more candle. It then consolidated around 0.86950. The buyers may push the price towards the trend line’s resistance. Thus, they are to keep their eyes as far as trade management is concerned.

At the trend line, the sellers will be waiting for a bearish reversal to go short in the pair. On the upside, the buyers will be waiting for the price to make a breach at the trend line’s resistance to push the price towards the North further.

Considering both charts, it seems that the price is still having a bearish trend having some significant resistances. However, it may make bullish correction. Double bottom and strong support may make the correction be a longer one. Let us wait and watch what the price action does.

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

Contact and follow Tareq on Twitter: @tareqfpn

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