Daily chart
Looking at the daily chart of the USD / CHF can see that the greenback continued to exert pressure on the Swiss Franc, which so far in today's session and made a new low at 0.8884 moving below the lower trend channel line bullish. However, since the line 2/8 (red line) has well be an important line of reversal and earlier the price also retreated from these levels, it is quite possible that the same thing also occurs now and in an extreme case the price would have to fall to the line 0/8 (blue line), which we consider unlikely, however that is the risk we must be willing to take if enter with buy positions.
4 hour chart
However, the 4 hours chart shows the USD / CHF is already in oversold end zones after touching the line -1 / 8 (purple line) seems to come and find support on the bottom line of the channel. Downtrend is likely here and so is the start of consolidation area for a change of direction. Moreover, observing this chart, we see it is to continue to be under the pressure from the dollar as its next support at 0.8850 would virtually become his last end zone overrun. The MACD and momentum indicators are also giving us samples of a turnaround so I believe it is a good time for buying positions with a baseline risk of 60 pips.
1 hour chart
Finally, on the 1 hour chart, we can also see the USD / CHF over an area as important support is 0.8900 with an increasingly short distance from its 200 period moving average. Moreover, the oscillator strength also shows a decrease in downward pressure as well as the oscillator can also see that trend is in oversold areas with a high probability of reversal to the upside.
In extreme cases also in this time frame if the downward pressure got out even lower prices even your next support would be at 0.8850 where your S-3 daily, below which we should place our stop loss.
If you have any questions or suggestions, please contact me at:
antonio.inga@analytics.instaforex.com
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