Technical Analysis – Will USDCHF start a new bullish wave?
June 2, 2023 11:28 amVideo
Latest News
- Analysis of GBP/USD on April 26th. The pound trades on Friday without changes April 26, 2024
- USD/JPY: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- EUR/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: trading plan for the US session on April 26th (analysis of morning deals). The pound attempted, but it didn’t go April 26, 2024
- EUR/USD: trading plan for the US session on April 26th (analysis of morning deals). The euro continues to rise April 26, 2024
- Trading Signals for GOLD (XAU/USD) for April 26-29, 2024: buy above $2,324 and sell below $2,352 (21 SMA – 6/8 Murray) April 26, 2024
- Technical Analysis – AUDUSD set to complete best week of the year April 26, 2024
- Will Apple finally drop its AI hint? – Stock Markets April 26, 2024
- Bitcoin slips as markets pare back Fed rate cuts – Crypto News April 26, 2024
- EUR/USD. April 26th. Bulls continue to advance after the GDP report April 26, 2024
- Can Chinese PMIs solidify the economy’s recovery prospects? – Preview April 26, 2024
- Weekly Forex Outlook: 26/04/2024 – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- XM’s Lombok Collaboration: Brightening Futures April 26, 2024
- Week Ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- Market Comment – Yen keeps sinking after Bank of Japan decision April 26, 2024
- Fed faces dilemma amid sticky inflation and slowing economy – Preview April 26, 2024
- USD/JPY: trading tips for beginners for European session on April 26 April 26, 2024
- GBP/USD: trading tips for beginners for European session on April 26 April 26, 2024
- EUR/USD: trading tips for beginners for European session on April 26 April 26, 2024
USDCHF is trading at the bottom of an upward-sloping channel, increasing speculation that the pair is preparing for its next bull run as traders are eagerly waiting for the US nonfarm payrolls release.
The Stochastic oscillator on the four-hour chart rotated northwards, but it has yet to exit the oversold region above 20, suggesting that some patience is still necessary. In other warning signals, the pair is still comfortably above the lower Bollinger band, questioning the case for an upside reversal.
A step above the 50-period simple moving average (SMA), which is currently acting as resistance around 0.9050, could navigate the pair towards the 23.6% Fibonacci retracement level of the 0.8850-0.9146 upleg and the 20-period SMA (middle Bollinger band), both at 0.9070. If the bulls breach that border, the price may advance towards 0.9110, while higher, it will attempt to crawl above May’s high of 0.9146 with scope to reach the channel’s upper boundary seen around 0.9165.
If sellers press the pair below the channel, immediate support could occur around the 38.2% Fibonacci mark of 0.9020. A close lower could intensify downside pressure towards the 50% Fibonacci of 0.8983, while the 200-period SMA around 0.8965 may also attract interest in the event of a more aggressive decline.
Summing up, even though USDCHF seems to have found an ideal pivot point, the technical indicators cannot warrant an upturn in the price. For a proper rebound, the price will need to rise sustainably above 0.9075.
Related Posts: