Hi Traders! USDCHF short term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. 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!
On the H4 chart, 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 evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently it looks like a correction has happened in the form of double wave to the downside. Also, the price which was moving lower reached a key support zone that has formed based on the 61.8%(0.92720) Fibonacci expansion level of the first wave of this correction and the 61.8%(0.92683) Fibonacci retracement level of the bullish trend pattern. The price respected this key support zone and is currently bouncing higher from this zone. In addition to this, we could see that the price which was moving lower created a bullish divergence that has formed between the first low that has formed at 0.92953 and the second low that has formed at 0.92603 based on the MACD indicator. Also, the price which is moving higher has broken above the most recent downtrend line, we may consider these as other 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 key support zone holds my short term view here is bullish and I expect the price to move higher further.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
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Arvinth Akash
Traders Academy Club Team
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View Comments
After the formation of Bearish Engulfing candle I expect a deeper pullback.
That how I see it.
Thanks
Ansar