empty
 
 
28.10.2020 10:51 AM
USD/CHF Price Action Signals Up Reversal!

USD/CHF has rebounded and now is almost to hit some critical upside obstacles. A valid breakout will indicate that the pair will develop a significant leg higher. The price rallies as the USDX has managed to rebound in the short term.

USDX's strong increase should bring a reversal on USD/CHF. Good US data today could support the USD's appreciation. Also, you should be careful around the BOC, this major event could bring high action on the greenback.

USD/CHF Breakout Needs Confirmation!

This image is no longer relevant

USD/CHF has jumped above the down channel's resistance and above the median line (ml) of the minor ascending pitchfork. A valid breakout would signal more gains in the upcoming days. The R1 (0.9124) is seen as a resistance as well, so maybe you should wait for a bullish closure above this level as well before going long on this pair.

The pair has retested the lower median line (lml) of the ascending pitchfork confirming it as strong dynamic support. Also, its failure to stabilize under 0.9056 level suggest that the downside movement is over.

  • USD/CHF Trading Tips

Buy a valid breakout (close and retest) above the downtrend line, median line, and above the R1 (0.9124). The first upside target is seen at the upper median line (uml), around 0.0197 level.

R2 (0.9212) and the R3 (0.9259) could be used as upside targets and obstacles as well. The upside scenario could be invalidated by a false breakout with great separation above the mentioned resistance levels or by a major bearish engulfing.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback