USD/CHF, H4
On the four-hour chart Tenkan-sen line has crossed Kijun-sen from below within the cloud, indicating the reversal of the trend. Chinkou Span line has crossed the price chart from below; Senkou Span A and Senkou Span B lines are going to cross, forming cloud reversal. Due to the strong Bullish movement the pair has entered the cloud but couldn’t reach its upper border, which has become a resistance level at 0.8972. Tenkan-sen line is the closest support level at 0.8902.
USD/CHF, D1
Let’s look at the daily chart. Tenkan-sen line is below Kijun-sen, they are both directed downwards. Chinkou Span is below the price chart; current cloud is still descending. After a long fall the pair has been corrected above Tenkan-sen line (0.8897), which has become a support level now. The closest resistance level is Kijun-sen line at 0.9011.
Key levels
Support levels: 0.8902, 0.8897.
Resistance levels: 0.8972, 0.9011.
Trading tips
On the four-hour chart we’ve got two signals of trend reversal, however the pair has entered the cloud, so new long trades should be opened above its upper border (0.8972). Daily chart doesn’t confirm the reversal of the trend, but shows us a correction of the descending movement.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies