Daily chart
USD/CHF was for several days in consolidation without a clear definition, but during Friday's session it fell hard over 80 pips to exceed the level of 2/8 (red line) reaching a minimum at 0.9020 and then withdraw and close at 0.9057, at the line of 2/8. At this time, the pair is traded at 0.9050 and is likely to retest the lows reached during the previous session; however this will be limited by the area of 2/8 which is in line with 0.9033 as this is considered as a point of strong reverse. Furthermore, we have another resistance at 0.9000, where we believe USD/CHF found its greatest support.
H4 chart
However, we should note that the 4-hour chart shows USDCHF trading at line 4/8 (blue line) of Murrey math lines, and we have to take into account that it is considered a safe area of support, and it is likely that the pair is reversed from this zone; however the closure of two or more candles below this level in this time frame would be showing signs of even deeper fall to the bottom of its range Quote of 3/8 (green line), which, we believe, is unlikely to occur.
H1 chart
Finally, in the 1-hour chart we can see that after the fall last Friday USD/CHF arrived to the area of the line -1/8 (purple line), considered an exceedance zone, the end of which fell to the red line 2/8 and it is very likely that in the next few hours it will try to undermine the last low point, however in this time frame there are also important supports, the first is at 0.9033, which houses line 0/8 (solid line) considered as the last support line difficult to break at 0.9018, then we have the purple line of -1/8 also considered an extreme line of overrun.
Our recommendation: Based on the analysis of three charts, our recommendation for Monday is:
Long-term Buy above 0.9033 with the first target at 0.9155 with a stop loss of 50 pips below 0.9033.
If you have any questions or suggestions, please contact:
Email: antonio.inga@analytics.instaforex.com
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