Daily chart
Starting a new week, USD/CHF, after closing Friday below the line 3/8, is currently trading well below this level. During the last three days, the pair has traded at this line without a clear direction. It is likely that this new week will show a clearer picture. From our point of view, the price of 0.9155 represents a crucial area because if the candle closes this day completely below this line, there would be a high probability that the price declines further to find a new support at 0.9033. On the other hand, the second scenario, which is less likely in our opinion, is that the price closes at the line 3/8 and it could be confirmation of possible bullish continuation.
H4 chart
The 4-hour chart also shows USD/CHF is within a range area and turning in a neutral zone like the line 4/8 (blue line). While the price does not exceed the line 5/8 (green line) which becomes the top line of the trading range, we still can not say that the price will continue to rise; on the contrary, if the next few hours the 4-hour candle closes below this line, it would remain neutral to the bearish scenario. In addition, we can also see that the price at this time is still below its moving average.
H1 chart
Finally the 1-hour chart shows USD/CHF is in a downtrend channel and trading below the line 3/8 (green line) which becomes a bottom line of your range trend, so that the predominant trend is still bearish in the medium term and with a high probability of continuing falling below its uptrend line to find its support at the line 2/8 (red line); it is considered as an important line of reverse.
So today our preference is to sell below 0.9155 with a stop loss of 50 pips for a risk management 2-1.
If you have any questions or suggestions, please contact:
Email:antonio.inga@analytics.instaforex.com
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