- USD/CHF trades around a massive resistance
- Simple Moving Average 30 works as support
- Intra day price action has been bearish
- Intraday sellers may look to go short from value areas
USD/CHF Trades within a Triangle
USD/CHF H4 chart shows that the pair has been up-trending with a moderate pace. The price has been obeying a bullish trend line. As of writing, the pair trades around a horizontal resistance, where it had a rejection earlier. If the price makes a bearish breakout at the trend line, the price may get bearish and make a move towards the South. The price may find its next support around 0.87000.
However, if the price makes a bullish breakout at horizontal resistance 0.88250, it may remain bullish for a while. The level of 0.89000 may work as a resistance in that case. Simple Moving Average 30 has been working as a support on the H4 chart as well.
The price has enough space to travel towards the both sides. Thus, the next breakout may be a crucial one.
Bearish Price Action Searches for a Resistance
The H1 chart shows that intraday price action has been very bearish so far. It produced two massive bearish candles. The last candle closed right at the trend line’s support. The price may make a bullish correction to find its resistance. The level of 0.88090 may work as a level of resistance. If the level produces a bearish reversal pattern, the sellers may go short in the pair and drive it towards the South. The price may find its next support around 0.87750.
On the contrary, if it makes a bullish breakout at the horizontal resistance, it may find its next resistance around 0.88700.
The H4 chart looks bullish-neutral. It may take some time to get bullish and make another move towards the North. On the other hand, the H1 chart has been bearish. Unless, it produces a strong bearish reversal pattern at the flipped resistance, it may not continue its bearish move. Concisely, traders are to be patient to find the next direction of the pair.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn