FXOpen
The US Dollar (USD) continued skyrocket movement against the Swiss Franc this week, increasing the price of USD/CHF to more than 0.8970. The Sentiment remains bullish due to Higher Low (HL) in the recent downward wave. The pair has also broken the neckline of the double bottom price pattern, validating more upside rallies in the near future.
Technical Analysis
As of this writing, the pair is being traded near 0.8973. A support can be seen around 0.8955, the low of the yesterday candle ahead of 0.8926, the 50% fib level and then 0.8872, the 38.2% fib level. The pair has already confirmed the bullish sentiment by printing a Higher High on the daily chart.
On the upside, the pair is likely to face a hurdle near 0.8987, the 200 Simple Moving Average (SMA) on the daily chart. A break and daily closing above the 200 SMA could spur a renewed buying interest, opening doors for 0.9156 as described above.
KOF Leading Indicators
The leading indicators declined by 0.2 points in May as compared to 1.8 points (revised) reading in the month before, down beating the median projection of 1.95 points increase, a report by the Swiss Economic Institute (KOF) revealed today. Generally speaking, a lower actual reading is considered bullish for USD/CHF and vice versa.
Trade Ideas
Many traders have already gone long following the breakout of the neckline—the highest level between the two bottoms of the price pattern. Those who are still out of the USD/CHF trade, should consider buying on dips near the neckline support area, the buy trade should however be stopped out on a daily closing back below the neckline. Alternatively, selling near 0.9156 may also be a good strategy in the long run, the stop of the sell trade may be placed at 0.9200.
Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest from Forex Analysis
Latest articles
US Government Shutdown: Assessing Economic Impact and Recession Risks
The recurring spectre of a government shutdown has once again loomed over the United States, prompting concerns about its potential economic consequences. The shutdown may occur this weekend unless lawmakers agree on spending levels and whether to give more aid
S&P 500 Analysis: Price Reaches The Edge of Abyss
Investors in the US stock market have serious reasons to worry: → The likelihood of a shutdown of government agencies is becoming more and more real. It could happen as early as next week if a budget agreement is not reached
Bitcoin Cash Analysis: Promising Resistance Breakout
Yesterday, the head of the SEC regulator, Gary Gensler, answered questions for 4 hours before the Financial Services Committee of the US House of Representatives, which, among other things, related to cryptocurrencies. What has become known: → on the eve of