Daily chart
On Tuesday the USD/CHF pair closed its session above its weekly pivot and although so far the price retreated back to the low it could not overcome the 0.8950 level. So we can expect a continuation of its medium-term uptrend after 24 and 25 with two candles of indecision we suppose a U-turn is likely to rise. Despite the fact that in the area of contribution of these hours we see a resistance level on the center line of gravity, which could also be a sign that the prices can be driven back to a new low that could fall into 0.8789, where celestial line 0/8 in this time frame would be its last support line.
4-hour chart
On the 4-hour chart we can see that after the rise of the USD/CHF pair during the first hours of trading the couple has not got over the line 3/8 (green line) which would have been indicative of entering the bullish zone. Instead we note that from the price 0.9000 area it retracts again and is turned downward to coincide with the top line of the trend channel. Therefore, and also because at this time the price is already below the line of 2/8 (red line) considered as an area of support/resistance strong we could expect a further fall to 0.8900 level or around this area.
However, we must also take into account that the statement of the Federal Open Market Committee (FOMC) in the coming hours will certainly have an impact on the movement of the dollar and consequently affect the Swiss franc, and we must be attentive to the results.
Meanwhile, our suggestion for today would be low risk entering sales orders below 0.8970 and with very tight stop loss 50 pips for a potential gain of about 80 pips.
If you have any questions or suggestions, please contact me right through:
Email:antonio.inga@analytics.instaforex.com
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