Daily chart
As we mentioned in our analysis on Thursday, Р В the USD/CHF has fallen below the 5/8 line (green line), so the picture becomes bearish in the short term. As we know the line 5/8 comes to be the top line of its trading range, now it comes to be a resistance to take into account along with the last peak. In the early hours of Friday the unemployment rate and the change in the price of the goods and services purchased by consumers are due to release, although forecasts are favorable for the Swiss currency, we believe that in all ways there is still space for the American dollar to win some points.
4-hour chart
On the other hand, the 4-hour chart also shows us the bearish picture. After Р’В having reached a peak of 0.9125 during the previous session. Prices rapidly fell to their nearest bracket located at 0.9069.
In the lower window, the trend indicator shows us a level of about purchase. Which allows us to think that prices still continue their decline well below current levels that could be prolonged even to 0.8911.
However, we should place our stop loss no farther than 60 pips away from the current price, i.e. around the last maximum.
1-hour chart
Finally, the 1-hour charts shows there is a slight support at 0.9065 which is the price at this time. On the other hand, its moving average of 200 period is already above the current price and our strength indicator of the trend gives us a bearish signal.
Therefore, first we should wait for a fall to 0.9000, with the possibility of which was then extended up to 0.8900. However, if the price returns above 0.9100, it would invalidate this panorama.
If you have any questions or suggestions, please contact:Р’ВВВ
Email: antonio.inga@analytics.instaforex.com
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