USD/CHF Price Analysis: Something for all as the price heads to monthly support
|- USD/CHF is trapped between resistance and support on a monthly basis.
- Support is expected to be tested where the opportunities will arise.
Whether you are a bull or a bear, the following top-down analysis has something for everyone.
Currently, there is little to take advantage of without being exposed to swings.
The case for the downside is diluted by the monthly support while the upside opportunities would be best placed once there has been an actual test of the monthly support.
Monthly chart, break of support prospects
If the support gives, then there is plenty of fuel in this correction that has made it to a 38.2% Fibonacci retracement level for the bears to stay in control and extend the downside towards lower structure.
However, if the support holds, then the upside will be back in the picture.
Strong support scenario
Weekly chart
In a scenario where there is strong support, bulls will seek entry and target the upside.
Daily chart
The right-hand shoulder (RHS) of the head and shoulders is also an M-formation.
The neckline can be targeted.
4-hour chart
Those seeking a test back to resistance would welcome a discount and there could be one in the making.
An extension fo the downside and subsequent test of the monthly support could well be in order at this juncture and offer a better entry point to target the M-formation's neckline.
The 4-hour chart can be monitored for bullish technical conditions once a test of the support has been made.
A break of the support will give rise to downside opportunities.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.