USDCHF recently broke below the bottom support trend line of the price channel on its 4-hour chart, suggesting that the upside movement from 0.9420 had completed at 0.9836 already. Near term support is at 0.9704, a breakdown below this level could trigger another fall towards 0.9564.

However, the fall from 0.9836 would possibly be correction of the uptrend from 0.9420. Let’s look into the daily chart, the USDCHF pair broke out of the top trend line of the price channel and it continued to move through an important resistance level at 0.9772, indicating that the downtrend from 1.0343 had completed at 0.9420 already. The pair is now in uptrend, as long as the price is above 0.9564 support, the uptrend could be expected to resume and further rise towards 1.0108 is still possible after the correction. Near term resistance is at 0.9836, above this level could signal resumption of the uptrend.

For long term analysis, the USDCHF pair moved sideways in a trading range between 0.9420 and 1.0343 on its weekly chart. Another rise towards the top of the range would likely be seen over the next several weeks. On the other side, the pair might be forming a double top pattern with neckline at 0.9420 level. A breakthrough the neckline support could trigger a 900 pips drop towards 0.8500.

Technical levels

Support levels: 0.9735 (the bottom of the price channel on the 4-hour chart), 0.9704 (the October 13 low), 0.9564 (the September 15 low), 0.9420 (the neckline of the double top pattern on the weekly chart), 0.9072 (the May 2015 low), 0.8500 (the measured move target of the double top pattern).

Resistance levels: 0.9836 (the October 6 high), 0.9861 (the January 31 low), 1.0108 (the April 10 high).

This article is written by Franco Shao, a senior analyst at ForexCycle.

© 2017 Copyright Franco Shao - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.