Daily chart
USDCHF has continued testing new lows for its third straight day, but if we go buying above 0.8850 and place our stop loss 30 pips below this point, surely our stop loss will remain there, as the minimum reached during the previous session was 0.8839. So our buy signal at these levels still remains in force, but we must take into account that in the next few hours at the opening of the European markets, strong fundamentals may create volatility for the pair. In particular, the Swiss National Bank will release its new interest rates, although no changes are expected. The forecasts are favorable for the Swiss currency.
H4 chart
The 4-hour chart also depicts the same picture as the previous chart. After its recovery within the last 8 hours, the price of USDCHF is back above the line 0/8 (yellow line) that gives us a buying opportunity. However, within next few hours, movements could move our level of stop loss by about 20 pips below the line 0/8 (blue line) to 0.8769. Thus, a risk would be 80 pips for a potential gain of 250 pips with which our risk would benefit from 2 or 3 to 1. That way we would not jump into the market too soon.
H1 chart
Finally in 1-hour chart the distance between the price and its moving average of 200 is becoming increasingly shorter which we would indicate a likely breach of the line and a possible turnaroundof the pair. At this time, it is at its daily pivot and it is likely to retest its low point during yesterday's session which incidentally is where your S-1 daily and it converges with the bottom line of its downtrend channel that it is becoming more likely with a lateral shift to rise. The oscillator strength also shows decrease in the number of sellers as well as the trend oscillator is in oversold areas with upward direction.
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Email:antonio.inga@analytics.instaforex.com
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