Daily chart
During the third day of trading the USD/CHF reacted with a strong bullish rally from the bottom line of the trend channel to its first weekly resistance movement with more than 80 pips with a bullish engulfing candle. This looks like the beginning of a bullish trend reversal in USD/CHF for Thursday. We can expect the Swiss franc gains positions and continue, its next target would be at 0.9033. However, it would expect a slight decline to the area delimited between line 2/8 (red line) and the green line that came to be its previous resistance so well we could place a pending buy order at 0.8910 with a stop loss no more than 30 pips. If instead we decided to enter these levels should be prepared for a temporary loss of 70 pips in the worst case.
4-hour chart
The 4-hour chart also shows the bullish outlook for USD/CHF because after finding support at the line 2/8 (red line) and have found support on the bottom line of its trend channel for this timeframe Swiss franc rose above the upper channel of its trend channel line up to 5/8 (green line) Murrey lines. As we know that line becomes the top of its trading range. Something that definitely influenced the markets was the announcement of the Fed to cut injecting dollars into the market and so the picture becomes bullish in the medium and long term.
1-hour chart
Finally the 1-hour charts show us the USD/CHF moving from end to end within its uptrend channel, having long surpassed its 200- period moving average in just 2 hours of trading. Now certainly we can expect is a continued and sustained rise above 0.8911 which is where its next support would be located further. it was a previous resistance level when the pair moved below that level. Thus, we would expect a slight decline to such levels where we could buy positions hard to minimize the risk that always exists in this market.
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Email: antonio.inga@analytics.instaforex.com
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