FBS: trade recommendation for USD/CHF
Tatyana Norkina, FBS analyst
The currency pair rebounded to the June highs 0.9035/0.9040. Obviously, at these levels the pair will experience serious resistance. However, the probability of a short-term recovery to the area of 0.9060 is rather high.
Ichimoku indicator. Indeed, on both timeframes the indicator looks quite positive: the action of the Gold Cross and bullish Cloud could trigger a new wave of purchases of the currency pair. But at the level of 0.9060 this attack can be stopped, as there is a strong resistance level, formed earlier this year at the upper boundary of the Cloud on H4 (outside of the area shown at the picture).
At the same time, it’s a big question whether the pair will manage to overcome 0.9040 on H4 as it looks very overbought.
Technical levels: support - 0.9010, 0.9020; resistance - 0.9040, 0.9060.
1. Sell - 0.9040; SL - 0.9065; TP1 - 0.9010; TP2 - 0.8990.