The USD/CHF currency pair, on the H4 time-frame, was in a downtrend until the 22nd of July when a lower bottom was recorded at 0.98041. Buyers found the price to be of good value and demand overcame supply.
After the bottom at 0.98041 the market broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator broke the zero baseline into bullish territory, both pointing to a possible technical trend reversal in the making.
A possible critical resistance level formed with a higher top was recorded on the 24th of July at 0.98754. Sellers then temporarily pushed the price lower and a higher bottom was registering on the same day at 0.98368.
A Hammer Candlestick formed at the pullback, followed by a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. This further strengthening the possibility that no more sellers were willing to enter the market and a reversal may be in progress.
Three possible price targets may have been projected if the USD/CHF broke through the critical resistance level at 0.98754.
Attaching the Fibonacci tool to the top of the possible reversal at 0.98754 and dragging it to the likely support level at 0.98368, the following targets may have been calculated. The first target could have been anticipated at 0.98992 (161 %). The second price target could have been predicted at 0.99377 (261.8%) and the third and final target may have been expected at 1.00001 (423.6%).
On the 25th of June the critical resistance level at 0.98754 was broken and a long position engaged. During the same day the first target at 0.98992 was reached and partial profit taken. This reduced the overall risk of the open trade and makes it much easier to leave it open in case the market continues to go upwards.
If the support level at 0.98368 is broken, the position needs to be liquidated because the possible scenario is then invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/CHF currency pair on the H4 time-frame will remain bullish.
After the bottom at 0.98041 the market broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator broke the zero baseline into bullish territory, both pointing to a possible technical trend reversal in the making.
A possible critical resistance level formed with a higher top was recorded on the 24th of July at 0.98754. Sellers then temporarily pushed the price lower and a higher bottom was registering on the same day at 0.98368.
A Hammer Candlestick formed at the pullback, followed by a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. This further strengthening the possibility that no more sellers were willing to enter the market and a reversal may be in progress.
Three possible price targets may have been projected if the USD/CHF broke through the critical resistance level at 0.98754.
Attaching the Fibonacci tool to the top of the possible reversal at 0.98754 and dragging it to the likely support level at 0.98368, the following targets may have been calculated. The first target could have been anticipated at 0.98992 (161 %). The second price target could have been predicted at 0.99377 (261.8%) and the third and final target may have been expected at 1.00001 (423.6%).
On the 25th of June the critical resistance level at 0.98754 was broken and a long position engaged. During the same day the first target at 0.98992 was reached and partial profit taken. This reduced the overall risk of the open trade and makes it much easier to leave it open in case the market continues to go upwards.
If the support level at 0.98368 is broken, the position needs to be liquidated because the possible scenario is then invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/CHF currency pair on the H4 time-frame will remain bullish.