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, we could see that the price which was moving higher has created higher highs which is a sign of gaining momentum towards the bullish side. We then had a pullback with the price creating a bullish hidden divergence that has formed between the first low that has formed on 21st January 2022 and the second low that has formed on 2nd February 2022 based on the MACD indicator which we may consider as another evidence of bullish pressure. In addition to this, we had a strong resistance zone that has formed and the price which was moving higher has broken above this zone and is holding above it. After the breakout this strong resistance zone is acting as a strong support zone for us. The price which was moving lower, reached this zone, respected it and bounced higher from this zone. After the first move to the upside currently it looks like a flat correction is happening in the form of a range. Until the strong support zone holds my view remains bullish here and if we get a valid breakout above the top of the range we may then consider it as a validation for the bullish view and may expect the price to move higher further.
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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
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