Daily chart
In our analysis we said yesterday that USD/CHF was in a consolidation area and wide area range between line 3/8 (green line) and 2/8 (red line).
Something definitely well contributing to a rather slow trading week is the lack of significant data from Switzerland able to move the market. The pair barely had weak reactions to U.S. data from yesterday.
However, despite this the picture seems clear to this day as the area of 0.9100 psychological level could not be easily violated, but instead the USD/CHF seems to have found here support that could push it to the upside, as we can see in H1 amd H4 charts below.
H4 chart
The 4-hour chart shaows that USD/CHF is at this moment finding support at the line 5/8 (green line) in this time frame, becoming the top line of its trading range. On the other hand, it has been kept for some time at this line demarcated at 0.9094; we would indicate that the psychological level of 0.9100 as strong support zone to keep in mind when trading this pair. Moreover, the fact that the U.S. dollar seems to show some strength against other currencies like the euro. It could also be signs of likely upward trend in the USD/CHF.
H1 chart
The 1-hour chart also shows an interesting picture as the two trendlines for this time frame show a shortening of the lateral movement of the USD/CHF. Meanwhile, note that the price is currently below the line 5/8 (green line) which is the top line of its trading range, however a possible decline is limited by the line 4/8 (blue line) that also at this time acts as support, in addition to the trendline. Therefore, our capital management allows us to take a risk of 40 pips, we could enter a market with an order to buy, up from 0.9100, placing our stop loss at 0.9060 with take profit at 0.9185 according to the 4-hour chart. In this way would have a risk of 2 to 1.
If you have any questions or suggestions, please contact me right through:
Email: antonio.inga@analytics.instaforex.com
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