USDCHF - Buying dips in the Expanding Wedge

Ian Coleman FXStreet

Technical

Monthly: Three consecutive positive monthly bars. Broken out of the wedge formation (yellow) to the upside. Reverse trend line support is located at 0.9895. The trend of higher highs (from 2012 and 2015) is currently located at 1.0600. With bespoke resistance located at 1.0680, this is our long-term target zone.

Weekly: Broken out of the Expanding Wedge formation to the upside. Previous resistance is located at 1.0039. With Demark posting a 13 count (exhaustion) there is ample scope for a correction lower. Reverse trendline support is located at 0.9848. Bespoke support is seen at 0.9930.

Intraday 4-hours: Mixed and volatile trading has resulted in an Expanding Wedge formation being posted on the 4-hour chart. Trend line support (lower lows) is located at 0.9916, just below bespoke support (0.9930). Buying dips offer reasonable risk against reward.

Action:

We look to Buy at 0.9930

Stop: 0.9750

Targets: 1.0050 and 1.0600

Article produced by Pia First for Orbex Limited
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Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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