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USD/CHF: The bear is in town

USD/CHF has been bearish on the daily chart. The pair produced a bearish candle breaching a significant level of support. The candle closed well below the level having no lower shadow. Thus, a breakout at yesterday’s lowest low may drive the price towards the South with good bearish momentum. The H4 chart shows that the price may consolidate and go towards the North to find its resistance before making a strong bearish move. However, the H1 chart looks very bearish. Let us now have a look at those three charts.

Chart 1 USD/CHF Daily Chart



The chart shows that yesterday’s candle closed below the level of 0.96000. The price had several bounces at the level. Thus, the breakout may play a significant role to drive the price towards the South. The sellers may go short below the level of 0.95400. The chart shows that the next significant level of support may come around the level of 0.94000. However, the level of 0.95000 may come as an intraday support, which may make the pair consolidate for a while as well.

Chart 2 USD/CHF H4 Chart



The chart shows that the price made a bearish breakout at 0.95800 and produced a spinning top followed by a doji candle. The sellers may wait for the price to consolidate and make a breakout at the level of 0.95465 to go short in the pair. Ideally, the sellers may keep their eyes on the level of 0.95800 to produce a bearish reversal candle followed by a breakout at the level of support to offer them entry. If the level of 0.95800 works as a level of resistance, the price may find its next support around 0.94800. In case of a bullish breakout at 0.95800, the price may head towards the level of 0.96000.

Chart 3 USD/CHF H1 Chart



The chart shows that the price has been after making a strong bearish move made a bullish correction. The level of 0.95600 has been working as a level of resistance. The price had rejection at that level twice. At the second rejection, the chart produced a doji candle. As of writing, the price has been very bearish in the current candle. If the candle closes as a bearish Marubozu candle, the sellers may wait for a breakout at 0.95450 to go short in the pair. The price may find its support around 0.94900. In case of a bullish breakout at the level of resistance, the price may get choppy for a day.

The daily and the H1 chart look very bearish. The H4 chart looks a bit neutral. Considering these three charts, it seems that the pair may end up producing a bearish candle on the daily chart.

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Friday, 05 Jun, 2020 / 7:46

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