USD/CHF: bulls can’t, bears don’t want
Tatyana Norkina, FBS analyst
Recently we have talked about the fact that a correction is long overdue. Short-term burst of activity from the bears last week didn’t break the current uptrend. However, optimism on the part of buyers isn’t observed either. Quite possibly, the cause is the psychological level of 0.9000. This level stood last week and is acting as resistance during the last 3 days.
Ichimoku indicator. Short-term sideways trading is quite on H1. Here we see that all the indicator lines are directed sideways. At the same time, the cloud top at 0.8990 supports the pair.
Contradictions are clearly visible at H4. Obviously, such a layout of the main lines of the indicator suggests buying of a currency pair. But the line Chinkou Span in the overbought area constrains the bulls. Therefore, decline towards 0.8975 and a break below this level can make the market decline to 0.8910. If the pair holds above 0.8990, it may mean upcoming purchases.
Technical levels: support - 0.8910, 0.8930, 0.8975, 0.8990; resistance - 0.9010, 0.9030.
1. Buy - 0. 9000; SL - 0.8980; TP1 - 0.9030; TP2 - 0.9060.
2. Sell - 0.8985; SL - 0.9005; TP1 - 0.8930; TP2 - 0.8910.