Weekly chart
In the weekly and in the monthly chart USD/CHF is trading below the line of 3/8 (green line), which eventually could mean that the downtrend is not over, and only when the price is above 0.9155, where the line 3/8 (green line) is, which comes to the bottom line of its trading range, we could say that the trend becomes more bullish.
Meanwhile, today the week that could be historical has begun: October 17 is just around the corner and there seems to be some sign of agreement in the U.S. to raise the debt ceiling.
We know, for starters, the " October 17 " is an estimate only, in fact, you cannot know exactly at what point it would vanish the penny (some say that the date is between October 22 and the first days of November) . We also know that it would be a temporary situation and they can invent some device or technicality to solve everything with a handshake.
Daily chart
Moreover, in the daily chart we have USD/CHF retreating the 0.9130 area. During Friday's session, it failed to overcome to finally close the session with a candle of indecision. This area is also the center line of the downtrend channel line and although eighth (yellow lines) of Murrey was overcome in the days, before because it is considered a support line / weak resistance. Today it could also be overcome again downwards to find the priceat the 0.9033 support. However, a rise above 0.9055 would invalidate this scenario, so it would have to wait until the price exceeds this level in order to enter the market.
H4 chart
In the 4-hour chart USD/CHF is now in a flat market at 0.9094, since it is line 6/8 (red line) after being promoted from zone 2/8 forming valleys that could be indicative of the onset of a general trend in the long term. But they must be very cautious and assume that the risk is much higher regardless of what they tell us the technical indicators and what determine in advance, how much we are willing to lose should the market move against us.
Our recommendation: Given the political and economic circumstances of the moment about the base currency, our recommendation for this week is very careful. Never place an order without a stop loss according to our level of risk.
If you have any questions or suggestions, please contact me right through:
Email: antonio.inga@analytics.instaforex.com
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