Wednesday, May 24, 2017

USD/CHF Hesitates

Yesterday evening we saw price action print a doji at the completed -27.2% Fibonacci extension. This showed a D1 completion leg and lower low. The indecision at the D1 area highlighted the potential for price to show a retracement. This means that we can expect the USD/CHF pair to retrace back up to previous support turned resistance, as well as then look for price to show a rejection from the 0.98345 support turned resistance to form a lower high, and continue bearish for a new lower low.

Today we have seen price so far form a bullish bodied hammer characteristic candle stick with buying pressure. It would be best to stay out of the market and continue to watch this pair to see whether price forms a new lower high at the area of 0.98345.

Long term support is seen at 0.95, while long term resistance is seen at 1.0320.

Chart: USD/CHF D1


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