Daily chart
At the end of yesterday the U.S. dollar recovered all that was lost against the Swiss franc, thereby closing just 1 pip their opening point. Today, after having tried to overcome during the first hours of trading on low reached yesterday, the U.S. dollar rallied again and continues to rise steadily, having passed its R -2 and then retracted a bit. Both its daily pivot line and 1/8 we show that the 0.8910 area is an important area of support and we believe that it is unlikely that the couple exceeds these levels since it seems to be giving a clear indication of a return on U after previous doji candle of yesterday.
4-hour chart
On 4-hour chart also note that USD/CHF is rising after it tried to cross the line area of 0/8 (blue line), which is considered the same as the last line of support which is second only in extreme cases and under normal conditions the price should have a change of direction from this area. On the other hand, we also have the bottom line of the trend channel, the area of which the price is rising. Therefore, we consider that this is a good time to enter the market in buying positions with minimal risk and high profit potential.
1-hour chart
Finally the 1-hour chart shows a similar picture for the USD/CHF pair has found support line -1/8 (purple line) and has traded in a range between the area of 1/8 and -1 8. Although the line of 1/8 is considered a weak support line, though it contributed a couple for several hours on this and end overrun area, there is a high probability that the price will reverse. On the other hand, and this morning we saw that the pair is trading above its 200-day moving average and this also becomes an important support to consider.
Our recommendation: Based on our analysis of the 3 charts our long-term suggestion is to go into buying positions above 0.8910 with a stop loss at 0.8870 and gain to 0.9155 potential.
If you have any questions or suggestions, please contact:
Email:antonio.inga@analytics.instaforex.com
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