Daily chart
This morning the USD/CHF pair was slightly receding after another fall to 0.8850, which is certainly an important area of support and possible reversal in the line and 1/8 (yellow line), which is considered as a weak support line. But the price has stopped at these levels for 3 previous attempts to pass it back and now again finding support on these levels, and that it converges with the bottom line of its trend channel; that is more parallel without a well-defined trend whenever we expect the USD CHF pair is reversed from this zone.
4-hour chart
The 4-hour chart presents a similar picture to the newspaper, as prices have again touching the line eighth (yellow line) Murrey and immediately retreated from these levels. The USD/CHF pair is now trading in this area for several days creating what may be a consolidation zone and then will reverse its direction. Oscillators and trend strength also show it as well as we can see both are approaching a zero point from which the trend will be defined. Although fundamental information today could bring down the prices a little below this line, we believe will be temporary and then there will be a bullish rebound, so we could place our stop at 0.8869, well below the line 0/8 and the bottom line of the trend channel.
1-hour chart
Finally on the 1-hour charts we may note that the USD/CHF pair has the important support level 0.8842, where there is its first weekly support. It has not been violated even during the fourth attempt so far in today's session. Therefore we believe that from this area is a good time to start buying more confidence with minimal risk. This long-term uptrend will be confirmed when the price exceeds its weekly pivot which is located at 0.8888 which should have happen during the next hours. On the other hand, the second graph window shows the momentum indicator with a clear upward direction.
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Email:antonio.inga@analytics.instaforex.com
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