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, Key Support Zone, Parabolic Sar, RSI 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 was moving lower reached a key support zone where the bottom of the range and the 200 moving averages coincides. The price respected this key support zone and has currently bounced higher from this zone. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as evidence of bullish pressure. Also, we have the most recent downtrend line breakout based on the RSI indicator which we may consider 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.
USDCHF H4(4 Hours) Chart Analysis – Bullish Divergence, Higher Highs, ADX Indicator
On the H4 chart, the price which was moving lower created a bullish divergence which has formed between the first low at 0.91022 and the second low at 0.90847 based on the MACD indicator. The price then moved higher and broke above the last high at 0.91753 thus creating higher highs. Also, we should note that the price which was in a bearish trend so far creating series of lower highs, lower lows has created higher highs for the first time in a while which we may consider as sign of a possible trend change. We may consider these as evidences 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. Until the strong support zone (marked in blue) shown in the image below holds, my short term view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
USDCHF D1(Daily) Chart Analysis
- Range, Key Support Zone, Parabolic Sar, RSI Indicator
USDCHF H4(4 Hours) Chart Analysis
- Bullish Divergence, Higher Highs, ADX Indicator
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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
Hi Vlad
I see a triangle on the weekly for the USDCHF. Please let me know your thoughts. Weekly attached.
Thanks
Hi Jacques,
It’s a potential, yes, but it’s too early to be called a triangle already.