The USDCHF currency pairing, on the D1 timeframe, followed a down trend until 6th January. This was when a last lower bottom recorded 0.87577. From that point, when Bulls started emerging, the demand began to overcome supply.
Following that lower bottom of 0.87577, price subsequently rose beyond the 15 and 34 Simple Moving Averages. In addition, the Momentum Oscillator navigated beyond the baseline at zero and progressed to find itself in positive territory.
A higher critical resistance level and top arose at 0.89259 on 18th January. As a result, the Bears tried to make gains without success. The formation of a higher bottom (0.88386) formed on 22nd January. With regard to the price, a Morning Star Candle Pattern that came into being at the higher bottom was further confirmation that control may be taken back by the Bulls.
On 1st February, the USDCHF moved beyond 0.89259 and a buy signal was triggered. It’s possible to consider three price targets from there. A number of targets can be considered by taking the Fibonacci tool and applying it to the resistance level’s peak at 0.89259, then moving it to 0.88386. It’s possible to project the first of the targets at 0.89799 (161 %). A further target may be likely at 0.90672 (261.8%) and another could be anticipated at 0.92084 (423.6%).
Should the 0.88386 support area break, the scenario above would be made invalid and would then require assessment.
So long as USDCHF market traders maintain their bullish sentiment, and if demand is overwhelmed by supply, then the outlook for the Daily timeframe’s currency pair would remain bullish.
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