FX.co ★ blaise.rogahn | USD/CHF

Currency pair USD/CHF - W1 chart. In early February, from the lows, the first upward movement was made to the resistance level of 0.7814. Sellers became active at this level and quickly pushed the price down, causing a rebound. It was expected that there would be a new attempt to break this level as a good technical rebound had already occurred at that time. Some assumed that the price would continue to fall below the previous low reached, although there were serious doubts about further decline as there were several significant signs that indicated a likely upcoming rise. The main sign was the presence of a bullish divergence on the MACD indicator being used. A large and beautiful divergence, a rare phenomenon on such a large scale chart. I consider this a reason to work upwards on smaller timeframes, and I think all sell formations should be skipped. It is evident that the resistance level of 0.7814 held defense for several weeks, but was eventually broken upwards, changing its status from resistance to support, becoming a mirror level. This indicates that the present divergence will continue to work and the target is to break above the range that has been forming for a long time, meaning a price breakout above the 0.8134 level. I don't see any sense in working downwards against such a signal for a rise. When the situation regarding Iran recently became clearer, the American dollar momentarily weakened in the market and the price here dropped. Since the price is at a mirror level, and of such a large timeframe, I believe there will be gradual upward pressure and a full realization of this good signal for a rise from the MACD indicator. The other major currency pairs are poised to strengthen the American dollar in the near perspective of a few weeks. The direct pair against the EURUSD previously retraced upwards to its strong weekly mirror resistance level and a decline followed from there, hence the rise here. Although there was a decline on the last day of April, a continuation of the price rise is still expected. I consider this simply a swing before the rise and a shakeout of excess buyers. The strong mirror level has not disappeared anywhere.

On the four-hour chart, I see the formation of a mirror level. The level of 0.7824 changed its status from resistance to support, a price rise is expected with a minimum target of 0.7877. The most important news in the economic calendar today is the US Job Openings report.