USD/CHF: correction is close (June 5)
Tatyana Norkina, FBS analyst
The currency pair keeps consolidating in a narrow range. The sideways channel doesn’t allow the bulls to continue the underlying trend. On H4 there’s an uptrend. Obviously, in this situation it would be logical to assume that an overdue correction is coming.
- This will happen if the prices break and fix below the upper limit of support for the four- Ichimoku Cloud on H4. Support is at 0.8960/0.8965. The pair was trading in this area at the moment of writing.
On H1 here is the lower boundary of the Cloud (Senkou Span B), which, as you know, is the most powerful line. The break of this level would mean the fall of the currency pair at least to 0.8935. In the longer term can USD/CHF can test lower limits of the H4 Cloud near 0.8850.
Technical levels: support - 0.8964, 0.8934; resistance - 0.8974, 0.8990.
1. Sell — 0.8960; SL — 1.8975; TP1 — 0.8935; TP2 — 0.8850.
2. Buy — 0.8974; SL — 1.8960; TP1 — 0.8990; TP2 — 0.9010.