Daily chart
The U.S. dollar has been losing ground to its other counterparts, both against the euro and the pound sterling and the Swiss franc case has not been the exception. Fundamentally, there are still many reasons to keep selling the dollar because rating agencies have criticized the U.S. close. Thus, under this premise with respect to USD CHF this should continue to fall below 0.9000. But technically the couple seems to show the beginning of a trend change to the upside since the low reached during the session last Friday did not get to beat the previous low of previous day was around 0.8972 and seems to close on with a bullish candle and that at this time the price is on the line -1/8 which is located at 0.9033, the same acts as a support to consider.
4-hour chart
4-hour chart shows the USD/CHF pair is trading on line 0/8 (solid line) after reaching the end overrun last -2/8 through which we have drawn a trend line upward (green line). On the other hand, there is also the fact that the level of 0.9000 is the bottom line of the trend channel, all of which could be a sign of a possible change in trend. But because we started a week full of data that mainly affect the U.S. dollar may see sudden movements in the case of the USD/CHF pair could take to try new lows below 0.9000 before a turnaround long run through what we want to minimize our risk would be good to wait a throwback to the 0.9000 area to buy positions with a fairly tight stop loss.
1-hour chart
Finally the 1 hour chart seems to confirm our appreciation of the USD/CHF pair still looking to make new lows below 0, but the likely decrease should not exceed the extreme overshoot line -1/8 which is at 0.8972 as both the oscillator and the oscillator strength of trend are showing signs of a possible upward trend also in this time frame. In fact to penetrate the area of its 200-day moving average, which is located at 0.9033, the pair would be giving us clear signals of a possible upward trend.
Meanwhile, we do not recommend a sell order. On the contrary, if our capital management allows an average risk of 80 pips, one could place orders in this area for a possible take profit of 2-1.
If you have any questions or suggestions, please contact: Email:antonio.inga@analytics.instaforex.com
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