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Chart Art: Uptrend-Consolidation Setups on USD/CHF?

November 1, 2023| Forex Market

It’s a new month, which means we’re likely to see lots of volatility for the Greenback thanks to a busy U.S. calendar.

And that means there’s still potential for lots of short-term opportunity in USD pairs, including this up trending market on USD/CHF. Will the bulls stay in control?

USD/CHF 1-Hour Forex Chart by TradingView

USD/CHF 1-Hour Forex Chart by TradingView

What’s up FX playas! As mentioned above, it’s already near the end of the week but there’s still lots of potential action to be had for the U.S. dollar with an incredibly busy calendar of jobs & business sentiment updates from the U.S.

The most notable event is this Friday’s U.S. Non-farm payrolls report, and if you plan on managing risk around that event, you’d be do some homework and get ready with our latest scouting report on the U.S. employment situation update for October.

As always, the fundies will determine the Greenback’s next moves and it’s your job on how you anticipate and risk manage that outlook, but we’re here today to help by point places on the chart where it makes sense to structure a strategy around.

Whether you’re bullish or bearish, USD/CHF might be a pretty solid market to setup around given the clean uptrend the pair is currently demonstrating.

For the bulls, there are several setups, including one for conservative players who think a pull back may be in the works before a return to the uptrend.

On the one hour chart above, we can see a mix of technical arguments lining up, including rising 100 and 200 simple moving averages, a rising ‘lows’ trendline, and a psychological area of potential support around the 0.9000 handle.

All put together, a dip to this area may draw in more long than short leaning technical players, as well as fundamental players who may use technicals as a market timing tool.

And of course, with the market currently in consolidation mode between 0.9080 – 0.9100, an upside break (and possibly retest) of that broken resistance may draw in momentum bulls to take the pair higher. With a daily average true range of around 60 pips, a move to the 0.9160 handle is a possibility if fundie picture brings in the macro players as well.

For the bears, a downside break (and potential retest) of the bottom of the consolidation range (around 0.9080) is a pattern to watch out for and see if that draws in more sellers.

Again, the market is currently in an uptrend and with the large technical confluence nearby, the downside move may be limited to the 0.9000 handle.

Once again, the price outcome will all depend on how the fundamentals play out, but what you do think? Are you leaning bullish or bearish on USD/CHF this week? Let us know in the comment section below!

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