Daily chart
Yesterday, it was a day of gains for the franc and the U.S. dollar had to give way to a further fall to 0.9170 trading very close to the line 3/8 (green line). But this morning the pair is trading back near the opening level of the session. Yesterday, it recovered almost 100% of the losses. But we can say that the prospects still remain bearish.
First of all, because the price is below the line 4/8 (blue line), which in this case is considered as the major resistance area, the pair will have to overcome in order to regain an upward bias.
Meanwhile, we can say that USDCHF remains in sales area.
Secondly, the pair is under its line of gravitation band of the downward trend, the center line points to a possible continuation of the trend to 0.9033, where the line 2/8 (red line) is placed, which would be its potential reversal zone.
4-hour chart
In the 4 hours chart USDCHF shows a possible continuation of the bearish trend since the rebound after the first hour so far in today's session. It is located below the apex of the angle formed by the two trendlines.
This morning, UBS consumption indicator report did not have much impact on the Swiss currency.
Therefore, we can say that the dollar will continue to lose ground against the franc. Falling is possible, at least, to 0.9094, where the line 5/8 (green line) is placed, which is the top line of your range of trend.
1-hour chart
Finally, in the 1 hour chart we see the downtrend channel, which is followed by USDCHF. Although during the previous sessions it attempted to overcome the line 4/8 (blue line) of Murrey math lines for this time frame. Selling pressure pushed prices back to base of trading range located at 3/8. So now the pair is trading at 0.9201. Therefore, our recommendation for today based on the 3 graphics analyzed is:
Sell below: 0.9216 Stop loss at: 0.9250 Take Profit at: 0.9115.
If you have any questions or suggestions, please contact:
Email: antonio.inga@analytics.instaforex.com