- A false breakdown through the median line (ML) brings a bullish momentum!
USD/CHF plunged in the short term due to the USDX’s sell-off and now is traded near a strong support area. Technically, the price could try to come back higher after the most recent decline.
The price is trading in the green on the H4 at the time of writing showing positive signs. Still, we need confirmation before considering going long again on this pair. USD remains under high selling pressure after the inflation data was released yesterday.
The CPI increased by 0.3% in January as expected, while the Core CPI registered only a 0.0% versus 0.2% expected. Unfortunately, the greenback didn’t receive a helping hand from the US economy, that’s why we need a bullish spark, confirmation, before buying USD/CHF.
Today, the US Unemployment Claims data could move the pair. Better than expected figures could bring more buyers into the game.
USD/CHF Within Support Area!
USD/CHF below the S1 (0.8904) and right on the 50% retracement level. It has failed to reach the ascending pitchfork’s median line (ML) till now, but it could still challenge this downside obstacle before deciding the direction.
The aggressive sell-off could bring a rebound soon. It remains to see if this bullish movement will start from above the median line (ML) or from the 61.8% retracement level.
A false breakdown with huge separation, a pin bar, through the median line (ML), or a major bullish engulfing printed on this dynamic support signals another upwards momentum.
Forecast & Tips!
Buy USD/CHF if the rate stays above the median line (ML) and use the Pivot Point (0.8975) as a first upside target. A false breakdown or a bullish engulfing could lead to bullish momentum.
The material has been provided by InstaForex Company – www.instaforex.com
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