Daily chart
The dollar lost positions rapidly on all fronts in Tuesday's session as a result of internal political conflict in the United States, which left the Obama administration with no budget from the date.
The Swiss franc also joined the list of currencies peaking at the 0.8990 price that had been achieved since February 2012.
In the daily chart of USD/CHF we see a bullish Harami candlestick pattern which can be a confirmation of a reversal to the upside.
H4 chart
In the 4-hour chart we can see that after reaching a low below 0.9000 and after touching the extreme overshoot line -1/8 (purple line), USD/CHF has been steadily ascending the last 16 hours and now stands at the line of 1/8 located at 0.9064. On the other hand, also in this time frame we can find a bullish engulfing candlestick pattern confirmed. For this reason we can expect a continuation of the way up as the first target to the line of 4/8 (blue line) which is located at 0.9155.
H1 chart
Finally, the 1-hour chart shows USD/CHF is trading above the 200-period moving average, having scored the recent high above its weekly pivot at 0.9071. So your next goal should be around your R-2 located at 0.9188.
Our recommendation: Based on the analysis of three charts, our recommendation for Wednesday is:
Long-term Buy above 0.9071 with a first target at 0.9200 with a stop loss at 0.8990
If you have any questions or suggestions, please contact:
Email:antonio.inga@analytics.instaforex.com
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