USD/CHF Price Analysis: Bulls looking for signs of a correction

FX

Share:

  • The Swiss Franc is on the march but a correction is eyed for.
  • USD/CHF bulls are lurking in what could be a support area for the coming sessions.

The Swiss Franc rallied in tandem with the Euro on Thursday which made a fresh four-week high against the US Dollar after the European Central Bank lifted interest rates to a two-decade high of 3.5% and guided towards more hikes ahead. This has seen USD/CHF subsequently plummet on the day towards a critical support area as the following technical analysis will illustrate:

USD/CHF H4 chart

We have seen a breakdown in the market structure which has left behind the M-formation, a reversion pattern that leaves scope for a correction back towards prior support structures.

USD/CHF H1 charts

Zooming down to the hourly charts, we see the structure on the left where the price could be headed before a deceleration might come into play leading to a phase of accumulation.

Zooming into the present, bulls will be monitoring for that deceleration and a bullish structure within the accumulation schematic to lean against and targetting the imbalance to the upside.

Articles You May Like

UK CPI set to rise above BoE target in October, core inflation to remain high
EUR/GBP Price Forecast: Extends gains past the 50-day SMA and 0.8300
Eicher Motors, HUL among 5 stocks with long unwinding
ICYMI – Chinese vessel spotted where Baltic Sea cables were severed
Gold bulls ready to rumble again?

Leave a Reply

Your email address will not be published. Required fields are marked *