- A bearish trend line is in play in the H4 chart
- SMA30 has been working as resistance
- The bear shows its momentum in the H1 chart
- A breakout below 0.87150 may make the pair more bearish
USD/CHF- H4 Chart
USD/CHF- H4 Chart Obeys a Bearish Trend Line
USD/CHF after being bullish in the H4 chart for a while found its resistance at 0.88000 has been bearish with a moderate pace. However, the pair had multiple rejections at a bearish trend line, which may make the pair very bearish. Simple Moving Average 30 has been working as a resistance in the H4 chart as well. Thus, the sellers may look to go short in the pair. The pair may find its next support at 0.86600, where it had reacted earlier several times. On the contrary, if the price makes a bullish breakout at the trend line, the buyers may look to go long in the pair upon having breakout confirmation. In case of a bullish breakout, the pair may find its next resistance around 0.89000.
USD/CHF- H1 chart
H1 Chart is in Bullish Correction
USD/CHF has been heading towards the North by obeying a bullish trend line in the H1 chart. The made a bullish breakout at a horizontal support at 0.87300. Thus, it may remain bullish in the H1 chart for a while. However, since the H4 chart is relatively more bearish, thus the sellers may wait for the price to produce a Double Top at the last rejection and make a bearish breakout at the bullish trend line to go short. In case of a bullish breakout at today’s higher high, the pair may find its next resistance around 0.87800. It means the Bull does not have enough space to travel before finding its next resistance. This may hold the pair and make it sluggish in case of a bullish breakout.
The H4 chart looks good for the Bear. However, the H1 chart may take time to get bearish. Thus, the sellers need to wait to see what the H1 chart’s price action does. Considering these two charts, the Bear may take over and make its move towards the South.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn