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.
For more information, please visit: FXTM
Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Crypto Rollercoasters, Meme-stock Explosions and Nasdaq Highs – There’s Something for Everybody
- Is This a Dip to Buy or the Start of a Market Correction?
- EURJPY – Bears might be coming out of hiding
- Risk Assessment – Fed’s Interest Rate News Changes the Landscape
- Sell in May Didn’t Work – Is it Now Time to Buy in June?
- GameStop Revolution Reveals Which Brokers Really Support Client Interests
Crypto Rollercoasters, Meme-stock Explosions and Nasdaq Highs – There’s Something for Everybody
Is This a Dip to Buy or the Start of a Market Correction?
Safest Forest Brokers 2020
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2011||Global CFD & FX Broker||
BEST FOREX BROKER Visit broker
|#2||Your capital is at risk Founded: 2015||Global Forex & CFD Broker||
LOWEST FEES Visit broker
|#3||Your capital is at risk Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#4||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#5||CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010||Global Forex Broker||
Low minimum deposit Visit broker
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox