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USD/CHF: Sellers have the upper hand

EagleFX

USD/CHF consolidated at a resistance zone for several days in the daily chart. The chart produced a spinning top followed by a doji candle. Then, yesterday it produced a bearish engulfing candle, which engulfed the doji candle. Thus, the sellers on the daily chart may look for opportunities to go short in the pair. The H4 chart looks good for the sellers, but the H1 chart may have something to offer to the buyers as well.

Chart 1 USD/CHF Daily Chart


The chart shows that the price consolidated around the level of 0.97600 for several days. The price had a rejection at the same level earlier. On Monday, the chart produced a spinning top on the daily chart followed by a doji candle. Yesterday’s daily candle engulfed the doji candle. Thus, the sellers may go short below 0.96375. The price may consolidate around 0.96000. If a daily candle breaches the level (neckline of the double top), the Bear may continue its domination in the pair.

Chart 2 USD/CHF H4 Chart


The chart shows that the price headed towards the South and made a breakout at 0.96750. The price reacted at the level multiple times. The price upon finding its support produced a bullish engulfing candle. It has been heading towards the North to make a bullish correction. The level of 0.96750 may work as a level of resistance. If the level produces a bearish reversal candle, the sellers may go short and drive the price towards the South again. The price may find its next support at 0.96375. If the price breaches the level, it may head towards the level of 0.95900 with good bearish momentum.

Chart 3 USD/CHF H1 Chart


The H1 chart shows that the price had a bounce at the level of 0.96425 twice. At the second bounce, it produced a bullish engulfing candle pushing the price towards the North. The buyers may go long upon bearish correction. The level of 0.96550 may work as a level of support if the price makes a long bearish correction. If the level produces a bullish reversal candle, the buyers may go long in the pair and push the price towards the level of 0.96850.

The H1 chart has something to offer to the buyers. However, the daily and the H4 chart look good for the sellers. The sellers on the major chart may get an opportunity to go short in the pair today. If they do, the pair may get more bearish in coming days.

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