- May 7, 2019
- Posted by: Trading
- Category: Alerts
USD/CHF Technical Analysis.
Eyes on CHF Job Market Data Tomorrow.
USD/CHF Stuck in a Narrow Range for Now.
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USD/CHF Daily Price Chart (Oct 2018 – May 07, 2019)
Price Trading in a Sideways Pattern – Failing at 1.0215
- Since April 23rd USD/CHF has been testing almost everyday the 1.0215 level and failing to close above, showing Weakness in the Upward Trend Momentum. On May 1st, the pair declined breaking below 1.0134 to print 1.0126 (its lowest level in nearly 2 weeks) however, prices closed inside the trading range with sellers likely taking profit.
- On Friday May 3rd, prices were rejected at the resistance level 1.0215, and today May 7th prices are again testing the resistance zone between 1.0215 and 1.0218 (Up-trend line originated from Jan 10th low) so any failure in closing above suggests staying in the range and eying its lower side located at 1.0134. Support levels at 1.0185, 1.0174, 1.0161 and zone between 1.0148 – 1.0142 need to be monitored along the way.
- On Relative Strength Indicator, we notice a formation of Top Failure Swing suggesting a bearish bias if the indicator reading falls below 58.4 as shown on the chart.
What If USD/CHF close above 1.0215?
A bullish sentiment would suggest a push towards 1.0286. Resistance at 1.0230 with the zone between 1.0250 – 1.0257 and 1.0278 need to be in focus.
USD/CHF 2 Hours Price Chart (May07, 2019)
- In a fresh push today, USD/CHF broke through 1.0215 printing 1.0222 (highest levels in 10 days) eying 1.0230 therefore, if prices break higher and remain above 1.0230, the next significant resistance would be at 1.0250 although 1.0238 would need to be cleared first.
- If USD/CHF pulled back to trade below 1.0196, it would suggest a bearish sentiment, hinting prices might move towards the 1.0161 support zone between 1.0185 – 1.0183. In addition, 1.0174 will be targeted along the way.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
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