Loading...
ZERØ-FEE
ZERØ-FEE
STOCK TRADING

THE ULTIMATE COST-SAVING SOLUTION FOR REAL STOCK TRADERS

Read more
by Charalambos Pissouros

USD/CHF Breaks a Downside Resistance Line

USD/CHF surged yesterday, breaking above the downside resistance line drawn from the high of the 13th of November. The recovery continued today as well and at the time of writing, the rate looks to be heading towards the 0.9910 resistance zone. The break above the aforementioned downside line may have switched the short-term outlook to a somewhat positive one, but we would like to see a decisive break above 0.9910 before we get confident on larger advances.

If the bulls are strong enough to drive the battle above that key hurdle, then we may see them aiming for the 0.9955 zone, which provided decent resistance from the 19th until the 26th of December. Another move higher, above 0.9955, could encourage buyers to add to their positions and may set the stage for the 0.9985 area, or the psychological round figure of 1.0000.

Turning attention to our short-term oscillators, we see that the RSI moved closer to its 70 line but has now started to slow down. The MACD, although above both its zero and trigger lines, shows signs of slowing down as well. These indicators make us cautious of a possible setback before the next leg higher, perhaps for the rate to test the aforementioned downside line as a support this time.

In order to start examining whether the bulls have abandoned the field, we would like to see a clear dip below 0.9850. Such a dip will throw us to the sidelines and may open the path for the 0.9800 obstacle. That said, the move after which we will start leaning to the bearish side is a dip below 0.9790. Such a move may allow the rate to slide all the way down to the low of the 10th of January, at around 0.9715.

USD/CHF 4-hour chart technical analysis

 Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

68% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd.

 

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT