Daily chart
During Monday's session the USD/CHF pair tried again to breach the 0.9155 area but it failed. As we mentioned yesterday in our analysis we believe that this area is an important resistance level. Similarly, this morning the pair is ascending recovering its losses yesterday, however after the formation of a double top after peak yesterday, you can expect a drop to 0.9033 over the coming days and remain at these levels for some time.
4-hours chart
The 4-hour chart shows that the peak reached yesterday by the USD/CHF pair was very close to the line 8/8 (blue line) which would be its last stand. So far this second day the pair is trading in the area of line 7/8 (yellow line) and to stop the price around this area, there is a high probability of a reversal in the short term. Bearing in mind that the trend oscillator is in overbought is very possible to expect a retraction to 0.9033.
1-hour chart
The 1-hour chart presents weak movements between their daily pivot resistance and one which would have to pass in order to continue its uptrend. On the other hand, we have the next resistance at 0.9100 in addition to its 200-day moving average. Our suggestion is that we can enter into short positions below 0.9136 with a risk of about 40 pips at 0.9170 and a potential gain of about 120 pips to 0.9000.
If you have any questions or suggestions, please contact:
Email:antonio.inga@analytics.instaforex.com
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