USD/CHF Technical Analysis | Forexlive
On the daily chart below, we can
see that the price has finally broken out of the falling channel. A further
breakout of the resistance at 0.9287 will give conviction
to the buyers to target the 0.96 handle.
As we can see the falling channel
was diverging with the MACD. When the price breaks out, we
can generally see a correction all the way back to the top of the channel. The moving
averages also switched to the upside giving a bullish bias.
On the 4 hour chart below, we can
see that the buyers are struggling to break convincingly the resistance at
0.9287. Last Friday we got a fakeout and this continuous knocking on the
resistance is now forming an ascending
triangle pattern.
The buyers should have enough
conviction to break out to the upside given that the fundamentals are now again
in favour of the USD. The market is repricing a higher terminal rate from the
Fed caused by recent hot economic data.
On the 1 hour chart below, we can
see that if there is to be a pullback, it shouldn’t go below the 0.9214 level
where we have confluence with the upper band of the
broken channel, the trendline, a previous swing point and the
61.8% Fibonacci
retracement level.
Sellers will need to break below
that strong zone to invalidate everything and then target the lower band of the
channel.
For the buyers that zone will be
the last line of defence. For the more near-term price action, a break above
the resistance at 0.9287 should lead to a bullish run given that yesterday’s US
PMIs surprised again to the upside.