Technical Analysis – USDCHF Short Term Forecast

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Technical Analysis - USDCHF Short Term Forecast

Hi Traders! USDCHF short term forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.

USDCHF D1(Daily) Chart Analysis – Range, Downtrend Line Breakout, ADX Indicator

On the daily chart, the price is moving inside a range which started on 9th June 2021. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has reached the bottom of this range respected it and bounced higher from this zone. Also, the price which is moving higher has broken above the most recent downtrend line and is holding above it, which we may consider as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. So based on all this, my short term view is bullish here and we may now move down to lower timeframe and look for evidences supporting this bullish view.
Technical Analysis - USDCHF Short Term Forecast

 

USDCHF H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bullish Trend Pattern, Key Support Zones

On the H1 chart, based on the Heikin Ashi candles we can see that, we had strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. In addition to this, the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as yet another evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Also, we have two key support zones that has formed, the first key support zone is formed by the 23.6%(0.92342) – 38.2%(0.92090) Fibonacci retracement levels of the bullish trend pattern. The second key support zone is formed by the 50%(0.91885) – 61.8%(0.91681) Fibonacci retracement levels of the bullish trend pattern. Until both these key support zones hold my short term view remains bullish here.
Technical Analysis - USDCHF Short Term Forecast

Technical Analysis & Forecast Summary

USDCHF D1(Daily) Chart Analysis 

  • Range, Downtrend Line Breakout, ADX Indicator

USDCHF H1(1 Hour) Chart Analysis 

  • Heikin Ashi Candles, Bullish Trend Pattern, Key Support Zones

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 short term 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.

Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

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If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Arvinth Akash
Traders Academy Club Team.

 

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