USD/CHF, H4
On the four-hour chart Tenkan-sen and Kijun-sen lines are getting closer under the cloud prior to the formation of the trend reversal pattern. Chinkou Span line is approaching the price chart from below, current cloud is descending. After long fall the pair has been corrected above Kijun-sen line (0.8794), which becomes a support level. The closets resistance level is the lower border of the cloud at 0.8875.
USD/CHF, D1
Let’s look at the daily chart. Tenkan-sen line is above Kijun-sen, they are both horizontal. Chinkou Span line is crossing the price chart from below; current cloud is descending. The upward impetus wasn’t enough for the price to break through the cloud and the pair rebounded under Kijun-sen line, which is a resistance level now (0.8825). One of the previous minimums of the Chinkou Span line is expected to be a support level at 0.8723.
Key levels
Support levels: 0.8794, 0.8723.
Resistance levels: 0.8825, 0.8875.
Trading tips
On the four-hour chart we can see a correction of the descending trend; on the daily chart the price is trading within a wide sideways channel. Target for the short-term buys is 0.8875.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies