USD/CHF: The Bull Holds the Key

• USD/CHF trades around a strong horizontal resistance.
• The H4 chart makes a strong breakout on SMA 30.
• The H1 chart looks bullish

USD/CHF- Technical Analysis-H4 Chart

The pair had a mixed week. At the beginning of the week, it made a bearish move. However, the price moved towards the upside and closed its trading week where it started. The horizontal level 0.88640 has been working as a resistance. The price reacted at this level earlier. As of writing, it has been heading towards the downside to make a bearish correction. Buyers may wait for the price to produce a bullish reversal pattern at the value area to go long in the pair. A breakout above 0.88640 may push the price towards 0.89350. Simple Moving Average 30 may hold the price as a support as well. If that happens, the buyers may be keener to buy more, which may generate good more liquidity.

On the downside, the horizontal resistance looks sturdy. A breakout below Simple Moving Average 30 may attract the sellers to go short upon having breakout confirmation. The price may find its support around 0.87700.

Price Action Analysis-H1 Chart

The chart shows that the price has been heading towards the North with good momentum. It has been obeying a bullish trend line. At its last bounce, it produced an inside bar and headed towards the upside in no time. It had a rejection around 0.88640. As of writing, the price has been having a bearish correction. The price may find its support at horizontal levels. The level of 0.88350 may hold the price and push it towards the North again. The price may find its resistance around 0.88640. A breakout above the level may push the price towards 0.89000.

The H4 and the H1 both charts look good for the bull. It is to produce a bullish reversal at the value areas to generate bullish momentum. Most probably, the pair may remain bullish at the first half of the current week.

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

Contact and follow Tareq on Twitter: @tareqfpn