FBS: trade recommendation for USD/CHF
Tatiana Norkina, FBS analyst
USD/CHF declined yesterday on the back of general weakness of the US dollar. Targets outlined in our previous review - 0.8905/0.8910 – have been reached. From this point the situation may develop in a quite unpredictable fashion.
Ichimoku indicator. Indeed, at H4 chart the pair’s trading right at the lower border of the Ichimoku Cloud. Recoil up is possible from this level to the Cloud’s top at 0.8935. However, at the hourly timeframe we see quite strong resistance at 0.8920. Therefore, given the bearish sentiment on both timeframes, today it would be more logical to be on the side of sellers from this level.
The target of the decline can be at 0.8885 or even 0.8875.
Technical levels: Support - 0.8905/0.8910; resistance - 0.8920, 0.8935.
1. Sell - 0.8920; SL - 0.8940; TP1 - 0.8885; TP2 - 0.8875.