USD/CHF: Parity on the way, Channel’s support pushing the price towards the North

USD/CHF has been trapped within an Equidistant Channel on the daily chart. The price had several bounces and rejections on its support and resistance. It had a bounce at its support yesterday as well, and the daily candle closed as a Hammer. Today's intraday price action has been bullish. The price has breached the highest high of yesterday's candle on minor frames. All these equations suggest that the pair may keep heading towards the North until it reaches the channel's upper band, but there are other equations that shall be counted by the buyers.


Let us have a look at the USD/CHF daily chart.


Chart 1 USD/CHF Daily Chart

On the chart above we can observe that the price has been obeying the channel quite nicely. The day before yesterday's, as well as yesterday's daily candles, both had a bounce at the support. The price could have had a bullish day yesterday since the day before yesterday's daily candle was a strong bullish reversal candle. However, yesterday's price action was bearish to start with. Thus the pair could not make a strong bullish move.


Chart 2 USD/CHF Daily Chart

The chart shows that the level of 0.9910 produced a strong bullish daily candle earlier. After having a rejection from the channel's upper band, it had consolidation around the horizontal support. Since the price has found both horizontal and channel support, this may make the buyers interested in buying the pair and push the price towards the North further.


Let us find out what the H4 chart's price action suggests to us.


Chart 3 USD/CHF H4 Chart

The chart shows that the price has produced a Double Bottom at a key level of support. Though the first candle of the current bullish wave was an Inside Bar, it has kept heading towards the North. It breached the neckline of the Double Top, produced a corrective bearish H4 candle, which was followed by an H4 bullish engulfing candle. This is a strong bullish price action which may attract the buyers to go long on the pair today. The next resistance may come at 1.0000, which is the strongest psychological number as far as any currency pairs are concerned.

The daily and the H4 chart both look good for the buyers. The risk and reward ratio seems to be lucrative for the H4 traders, but for the daily traders, it is not as good as they would have liked. A massive psychological number is in the way which must be taken into account before setting Take Profit.



100% Anonymous Trading on EagleFX - Trade NOW!

Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD nears weekly highs as risk-on returns

The EUR/USD pair was dragged higher by a soaring Pound, now hovering around 1.1040. The market is all about sentiment, and this last dependent on Brexit and the US-China trade relationship.



GBP/USD surges to 5-month highs on reports of a draft Brexit deal

GBP/USD has leaped toward 1.28, hitting the highest since May. Reports suggest that the UK and the EU are zooming in on a deal. Details are awaited and negotiations continue.


USD/JPY in search of a firm direction, stuck in a range below mid-108.00s

The prevalent risk-on mood weighed on the JPY’s safe-haven status and extended support. A sharp fall in the US bond yields undermined the USD and failed to impress bullish traders.


Cryptos: Incumbents don't know to play well

The Libra project led by Facebook remains on track despite the first defections. Those who have abandoned the project are mostly payment gateways. Bitcoin's lack of tone weighs on Ethereum's mood.

Read more

Gold consolidates in a range below $1500 mark

Gold extended its sideways consolidative price action on Tuesday and remained confined in a narrow trading band, below the key $1500 psychological mark.

Gold News

Forex Majors