Chart of the Day: Spot USD/CHF (08/07/2020) | alb.com
From a technical perspective, the USDCHF is trading below key moving averages across multiple time frames. On the daily time frame, yesterday candle suggests that buyers were unable to push price higher and successfully close around the highs. Even though it did close above its open, the sentiment suggests that sellers are still in control of this market. If today’s candle closes below yesterday’s low at 0.94082, this will strengthen my bearish conviction and the combination of yesterday and today’s candle is part of a continuation pattern to the downside. However, it is important to emphasize that we have seen buyers step in within the area 0.94440 – 0.93760 as evident on 11/06/2020. Price has tested that area and bounced 23/06/2020, 24/06/2020 and 02/07/2020 before eventually closing within that zone on 06/07/2020. Therefore in order to achieve our profit target at 0.93238, not only does price need to close below this area, we’ve also seen buyers step in around 0.93181 on 06/03/2020 and price retesting that level on 11/03/2020 and 12/03/2020. Therefore, trailing our stop loss and employing proper risk management will be key particularly if other fundamental drivers affecting the U.S. Dollar or global economy come to the fore.
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