The USD/CHF currency pair, on the H4 chart, was in a downtrend from the 11th until the 20th of March. Buyers found the price at 0.98947 attractive and started countering selling pressure. For a time there was a balance between demand and supply and the resulting range lasted until the 28th of March, when the market made a higher top at 0.99746. This might prove to be an important resistance level. During the range demand slowly started building momentum with the price breaking through the 15 and 34 Simple Moving Averages and the Momentum Oscillator piercing the zero baseline. A Hammer Candle as well as a cross of the 15 and 34 Simple Moving Averages, called Golden Cross, also confirmed the possible new influx of demand that could cause upward pressure in the market.
After the higher top that was recorded at 0.99746, the bears temporarily managed to bring prices lower and a bottom was recorded at 0.99461. `
If the price of USD/CHF breaks through the important resistance level at 0.99746, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible reversal at 0.99746 and dragging it to the bottom of the pullback at 0.99461, the following targets may be calculated. The first target can be anticipated at 0.99922 (161 %). The second price target can be projected at 1.00207 (261.8%) and the third and final target may be expected at 1.00668 (423.6%).
If the bottom at 0.99461 is however broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/CHF currency pair on the H4 timeframe will remain bullish.
After the higher top that was recorded at 0.99746, the bears temporarily managed to bring prices lower and a bottom was recorded at 0.99461. `
If the price of USD/CHF breaks through the important resistance level at 0.99746, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible reversal at 0.99746 and dragging it to the bottom of the pullback at 0.99461, the following targets may be calculated. The first target can be anticipated at 0.99922 (161 %). The second price target can be projected at 1.00207 (261.8%) and the third and final target may be expected at 1.00668 (423.6%).
If the bottom at 0.99461 is however broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/CHF currency pair on the H4 timeframe will remain bullish.