Long term trend: Down
Medium term trend: Up
Significant Levels: 0.9000 (Significant Round Number), 0.9160 (Horizontal Support), 0.9400 (Horizontal Resistance), Monthly Downtrend, 50% retracement of the very large bearish bar
The price is currently in a significant solid area right now. It reached the 50% of the very large down move that happened with the Swiss National Bank's announcement. It's also near the downtrend line which was drawn in the monthly chart which means, it is a very significant area. We can see that in the last 8 daily bars, the price stayed within this area. The price consolidated, making a sideways range.
This market is really interesting right now. Though the very big down move normally indicates that the bears want to push the price down, I'm still bullish on this currency pair. One reason is that, US Dollar is, I think, the strongest currency right now. So any currency pair other than USD, is not that strong. I'm not saying that CHF is weak right now, but compared to USD, it's definitely weaker. Another reason is that, EURUSD and USDCHF currency pairs are highly correlated. Although the correlation is not that high right now, I think, eventually, it will go back to normal. EURUSD is in a downtrend right now, therefore, we could say that USDCHF is in an uptrend.
It could be a great opportunity to go Long now because the price, as mentioned, is in a consolidation right now. The price might resume moving up soon. But don't forget to set your stop losses because we don't know when the bears will be back in the game. Again, I'm bullish on this currency pair, and I think now is the right time to go Long.
Trade well.
Medium term trend: Up
Significant Levels: 0.9000 (Significant Round Number), 0.9160 (Horizontal Support), 0.9400 (Horizontal Resistance), Monthly Downtrend, 50% retracement of the very large bearish bar
The price is currently in a significant solid area right now. It reached the 50% of the very large down move that happened with the Swiss National Bank's announcement. It's also near the downtrend line which was drawn in the monthly chart which means, it is a very significant area. We can see that in the last 8 daily bars, the price stayed within this area. The price consolidated, making a sideways range.
This market is really interesting right now. Though the very big down move normally indicates that the bears want to push the price down, I'm still bullish on this currency pair. One reason is that, US Dollar is, I think, the strongest currency right now. So any currency pair other than USD, is not that strong. I'm not saying that CHF is weak right now, but compared to USD, it's definitely weaker. Another reason is that, EURUSD and USDCHF currency pairs are highly correlated. Although the correlation is not that high right now, I think, eventually, it will go back to normal. EURUSD is in a downtrend right now, therefore, we could say that USDCHF is in an uptrend.
It could be a great opportunity to go Long now because the price, as mentioned, is in a consolidation right now. The price might resume moving up soon. But don't forget to set your stop losses because we don't know when the bears will be back in the game. Again, I'm bullish on this currency pair, and I think now is the right time to go Long.
Trade well.