USD/CHF: trading on Ichimoku
Tatyana Norkina, FBS
The US dollar recovered some ground versus the Swiss franc following a decline to 0.8860. As we have already mentioned, the key support lies at 0.8850. We expect this level to be hit in the nearest future. The reasons are given below.
Ichimoku. We see from the H4 chart that the market is not oversold anymore. What's more, the horizontal Kijun-sen line is limiting the upside around 0.8890. The overall Ichimoku sentiment is bearish.
On the hourly chart the bullish positions are weakening as the price approaches the upper boarder of the Cloud. Senkou Span B formed a resistance slightly above the 0.8900 figure. Today the market has a high chance to break the 0.8885 support and to decline to 0.8850.
Technical levels: support – 0.8885, 0.8850; resistance – 0.8890, 0.8905/0.8910.
Sell — 0.8880/0.8890; SL — 0.8910; TP1 — 0.8850.