Daily chart
Looking at the daily chart we can see that the USD/CHF after the previous day had seen a small rebound, and currently maintains its bearish bias and fixing a pip lower from the yesterday's session. With the U.S. dollar asleep for the holidays, it is possible that the Swiss franc would gain ground again and its next short-term target would be at 0.9033 which may not equal 30 pips this time. So, as the line 2/8 (red line) is an important support zone and only 10 pips of it finds its S - 1 weekly from there where we might expect a turnaround for the following week and consequently the beginning of a new month.
4-Hour chart
The 4-hour chart also shows a scenario that points to a shift in the USD/CHF because on the one side after the last 2 lows have a double floor and it is very likely that the couple will try again to violate this minimum and this could well be where your 0.9023 S -1 weekly as we can see from the chart and from that experience a change in trend to the upside. Looking more closely at the quote from the earlier periods such as the months of September and October, we note that there is also a build around this area and at this time it would be before the formation of the figure known as Head and Shoulder.
1-Hour chart
Finally, on the 1-hour chart we see a sideways trend channel which also comes to us showing signs of consolidation around this area and it is almost always possible as often happens in forex, this turnaround was then given a last fall scoring a fresh current to finally bounce to the upside and to start a new trend. Therefore, an entry in buying positions above 0.9033 would allow us to enter the beginning of a turnaround which also minimizes any loss as our stop the could have a maximum of 40 pips.
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Email:antonio.inga@analytics.instaforex.com
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