- USD/CHF made a bearish breakout at consolidation support.
- The sellers may look to go short in the pair.
- The H1 chart looks bearish approaching towards today’s low.
- Intraday minor charts have been choppy.
USD/CHF – Technical Analysis- H4 chart
The chart shows after a long consolidation, the pair has made a strong bearish move and made a breakout at 0.88535. As of writing, the pair is traded below the level. Moreover, the simple moving average 30 has been working as one of its resistances as well. Thus, the sellers may be keen to go short in the pair and drive the price towards the South. The price may find its next support around 0.87750.
On the other hand, if the price breaches the level of 0.88535, the pair may get choppy again. It may not get that bullish since the SMA 30 has been working as a resistance.
Price Action Analysis- H1 Chart
The pair has been down trending by obeying a trend line. Before making the last move, it was traded around the trend line’s resistance for quite a while. It then produced an inverted hammer and continued its bearish journey with good momentum. The level of 0.88535 seems to be a significant level on the H1 chart as well. The sellers may look to go short from the value areas and drive the price towards the South further. The price may find its support around 0.87500.
On the contrary, if the price breaches the trend line and confirms the breakout, the buyers may get themselves engaged to look for long opportunities. In that case, the price may find its resistance around 0.88900.
Considering both charts, the bear is clearly ahead. The trend line on the H1 chart and the horizontal resistance on the H4 chart may make the pair remain bearish for some days.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn
Leave a comment