USD/CHF: Is SMA 30 Support Strong Enough to Break Horizontal Resistance?

• USD/CHF has been heading towards the upside upon finding its support at the SMA 30 on the H4 chart.
• The pair produced a morning star at the SMA 30.
• It has been gradually heading towards a strong resistance on the H1 chart.
• Intraday minor charts have been bullish in the Tokyo session.

USD/CHF – Technical Analysis- H4 chart

The chart shows that the pair produced a bearish candle last week with a long lower spike. The candle closed within the SMA 30’s support and produced a bullish doji candle. The next candle came out as a bullish one. As expected, the current candle has been bullish so far. The buyers may push the price towards the North. Nevertheless, the level of 0.85330 may work as a resistance. A breakout above the level may attract more buyers. Thus, the pair may head towards the North with stronger bullish momentum. The price may find its next resistance around 0.87000.

On the contrary, if the horizontal resistance produces a bearish reversal pattern and the price breaches the SMA 30’s support, it may get bearish. The price may find its next support around 0.84000.

The chart shows that the chart found its resistance 0.85330 earlier. Upon producing a bearish Pin Bar, the price headed towards the South in a hurry. It then, produced a bullish inside bar. Since then, the price has been heading towards the North gradually. It may find its resistance around 0.85330. The buyers are going to wait for the price to make a breach at the level to go long in the pair.

On the other hand, the sellers are going to wait for the chart to produce a bearish reversal pattern to go short in the pair.

Considering both charts, it seems that the pair may continue its bullish move both on the H4 and H1 chart. On both charts, the level of 0.85330 may play a vital role. Thus, traders are going to keep their eyes on the price action around that level to manage their trades or to make next trading decision.

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

Contact and follow Tareq on Twitter: @tareqfpn