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USDCHF D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence, Bullish Hidden Divergence
On the daily chart, the price which is moving lower has reached a key support zone formed by the 261.8%(0.87493) Fibonacci expansion level of the first wave and the 61.8%(0.88019) Fibonacci expansion level of the second wave we have. The price respected this key support zone and bounced higher from this zone. We also had a bullish divergence that has formed between the first low that has formed at 0.88217 and the second low that has formed at 0.87571 based on the MACD indicator. Currently, we have a bullish hidden divergence that has formed between the first low that has formed at 0.87571 and the second low that has formed at 0.88706 based on the MACD indicator which we may consider as another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
USDCHF H4(4 Hours) Chart Analysis – Bullish Convergence, Downtrend Line Breakout, Strong Support Zone
On the H4 chart, the price has created a bullish divergence between the first low that has formed at 0.88897 and the second low that has formed at 0.88706 based on the MACD indicator. Then the price moved higher and broke above the high at 0.89391 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Also, the price which is moving higher has broken above the most recent downtrend line which we may consider as another evidence of bullish pressure. So everything looks good here for the bulls and until the strong support zone shown in the screenshot below (marked in blue) holds my view remains bullish here.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
Technical Analysis & Forecast Summary
USDCHF D1(Daily) Chart Analysis
- Key Support Zone, Bullish Divergence, Bullish Hidden Divergence
USDCHF H4(4 Hours) Chart Analysis
- Bullish Convergence, Downtrend Line Breakout, Strong Support Zone
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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To your success,
Vladimir Ribakov
Certified Financial Technician
