Market NewsTechnical AnalysisUSD/CHF

USD/CHF: Has it Been Oversold, What’s Next?

Money of Switzerland. Swiss franc bills. CHF banknotes. 100 francs. Business, finance, news background.
  • USD/CHF has been choppy on the H4 chart trading around a strong support.
  • The pair trades below the SMA 30, but has not generated any bearish momentum for a while.
  • The H1 chart looks choppy waiting to find its direction.
  • Intraday minor charts is traded within a horizontal channel.
USD/CHF H4 chart
USD/CHF H4 chart

USD/CHF – Technical Analysis- H4 chart

The chart shows that the pair has been traded around 0.88175 for quite a while. Considering the H4 chart the pair has made a breakout at the level. However, it is not an explicit breakout with momentum. The sellers have not looked sanguine to drive the price towards the South. A bearish reversal candle followed by a price breach at today’s low may drive the price towards the level of 0.87800.

On the contrary, if the price breaches the SMA 30’s resistance, the buyers may find long opportunities upon having bullish reversal pattern at the value areas. The price may find its resistance around 0.89000.

USD/CHF H1 chart
USD/CHF H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has been struggling to make a breakout at 0.88250. It produced a bearish engulfing candle earlier, but the sellers did not drive the price towards the South. As of writing, the pair trades around the resistance. A breakout below 0.88125, being today’s lower low, may generate bearish momentum. The pair may find its support around 0.87800.

On the upside, if the price breaches the resistance, the buyers may wait for the price to produce a bullish reversal at the value areas to go long in the pair. The pair may find its resistance around 0.88750.

Considering both charts, it seems that the pair is oversold. Thus, it may get bullish or take time to make another bearish move again. Sellers are to be patient here. Buyers, on the other hand, may find some good long setup with lucrative risk-reward.

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

Contact and follow Tareq on Twitter: @tareqfpn

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