USDCHF Technical Analysis | Forexlive
On the daily chart below for USDCHF, we can
see that the pair has been falling nicely with the sellers always leaning on
the trendline. The rejections have been
perfect and with this latest bounce, we may expect the price to come back to
test the trendline again.
The moving
averages are well crossed to the downside and will act as resistance for the
sellers. The economic data to watch will be the US Jobless
Claims tomorrow and the US PMIs on Friday. We are likely to see another
rejection of the trendline or a breakout depending on the outcome of the data.
On the 4 hour chart below, we can
see more closely how perfect the rejections have been from the trendline. At
the moment, the short-term trend is bullish as we can also see from the moving
averages being crossed to the upside.
This pullback is likely to test
the trendline where we have the confluence with many other technical tools
like the 61.8% Fibonacci
retracement level, the daily red long period moving average
and the previous swing low resistance. This spot will be the one to watch.
On the 1 hour chart below, we can
see that the price is now bouncing from a short-term support created by the previous swing
high. We are likely to see the price rising from here towards the trendline.
But if this fails and the price breaks down, we may see the downtrend resuming
already.
Anyway, the sellers are likely to
pile in both on this support break and a retest of the trendline. The buyers,
on the other hand, will want to see the price to break above the trendline
supported by a fundamental catalyst to get the conviction to target higher
highs.