Yahoo Finance Morning Market Updates – USD/CHF
Intraday bias in the USD/CHF pair remains neutral as it has bounded in range of the 0.9779 level. On the upside, a decisive break of the 0.9820 resistance level will revive the bullish case of reversal. The pair’s whole decline has completed at the 0.9779 level after defending the support. The pair should then target channel resistance now at the 0.9820 level next. Meanwhile, the pair is bounded inside the medium term falling channel and limited below retracement for the moment. The pair breaking at the 0.9779 level will turn bias back to the downside towards the 0.9753 level. This could also extend the fall from support level at the 0.9779 support level.
In the bigger picture, we keep slightly favoring the case that the USD/CHF pair has successfully defended the 0.9779 support level. The pair’s long term range is trading in the 0.9820 level extends with another rise. At this point, there is slight sign of an uptrend. Hence, a further rise is expected in the pair. We start to be cautious on loss of momentum above retracement at the 0.9820 level. However, a firm break of these levels will carry a larger bullish implication and would target next key resistance at the 0.9846 level.
The dollar U.S. purchases of new homes unexpectedly advanced in broad fashion last month. The rising days are showing strength by some bullish candles. Whilst any recovery upcoming days are beset with ease to make more headway and will turn in effect into consolidation days. The pair’s current candle was another consolidation day where the bulls have provided the support to make the sustainable impact, before once more resuming the rise overnight. The daily momentum indicators have all now taken as a corrective outlook. The pair trading with the stochastic is both rising above the 50 level and the lines having crossed higher. The pair is back into the old pivot band at the 0.9805 level so it will be interesting to see the reaction. The likelihood is that the levels of the resistance shall be broken above which has often been seen as an inflection point will now be tested. The four hourly chart shows the resistance at this level is bolstered now as a key level, with the 0.9820 level initially an area of near term overhead supply.
The USD/CHF pair shows some slight bullish bias after testing the 0.9779 level. The pair is affected by stochastic positivity that appeared on the four hours’ time frame. The price is still inside the correctional bullish channel that appears on the chart and rises under the positive pressure formed by the support area.
Therefore, this contradiction between the technical factors makes us continue with our neutrality until the price confirms its next destination through breaching one of the key levels represented by the 0.9820 resistance level. This reminds us that breaking this level will extend the bullish correction to reach the 0.9846 direct. While the pair breaching the resistance stop the correctional bearish trend scenario. This will push the price to achieve gains that start at the 0.9846 followed by 0.9872 levels.
The pair’s expected trading range for today is between the 0.9779 support and 0.9846 resistance levels.
Expected trend for today: Slightly Bullish
For more detailed analysis from the author, please visit NoaFX.
This article was originally posted on FX Empire
