Daily chart
After the recent low was reached in 0.8943, the USD/CHF seems to try to find a new support below line 3/8 (green line) where it is at this stage that would occur in case the pair's next support line at 2/8. However, for this scenario during today's session, it would have to be completely closed below its lower trading range line as the line becomes 3/8. Conversely, after the latest unemployment and NFP, we believe that the U.S. dollar will have a recovery and this should be confirmed with a close above line 3/8 which is most likely to occur, which would create a widening of its uptrend channel.
4 hour chart
The 4 hour chart seems to confirm what we mentioned in our previous post, as the USD/CHF after finding support on its lower trend channel line at this point try bounce above this. Although 08971 is its second weekly support and the pair trades at this time under the same, however the sign above 0.8971 would become its base range to eventually change upward trend, so for now we should wait and go over the line with a stop loss below the minimum to do this day.
1 hour chart
Finally, in the 1 hour chart, the USD/CHF is also facing resistance which seems to come as its first daily support because after the pair tried to infringe, it has retracted. In the bottom window we can also notice that the oscillator strength decreases and the trend oscillator is in oversold area; all of this contributes to thinking that today it could be the last attempt to follow and then slowing down and even imminent change trend. Even if you managed to fall below its S-1, the risk of potential gain for the next days or weeks should be moderate.
If you have any questions or suggestions, please contact me at:
antonio.inga@analytics.instaforex.com
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