USD/CHF - Buck loses and will loose
Due to recent fundamental events the US Dollar has plummeted down to the lower trend line of a channel down pattern against the Swiss Franc. Moreover, it has fallen once more below the 2016 low level.
As the move occurred due to fundamental events, market participants should still look out of a breaking of the channel down pattern. However, if a rebound occurs, it is most likely still going to be a descending one, as the rate would face the resistance of the 2016 low level and the weekly S2 at the 0.9460 mark. In that case the pair would fall as low as the 0.9368 level, where the third weekly support is located at.
As the move occurred due to fundamental events, market participants should still look out of a breaking of the channel down pattern. However, if a rebound occurs, it is most likely still going to be a descending one, as the rate would face the resistance of the 2016 low level and the weekly S2 at the 0.9460 mark. In that case the pair would fall as low as the 0.9368 level, where the third weekly support is located at.
Comment:
The adjusted pattern is still alive. Take a look at a reviewed close up.
The Buck recently fell below the support of the 61.80% Fibonacci retracement level located near the 0.9550 mark against the Swiss Franc. The passing of the retracement was long expected, as SMAs were pushing the rate lower.
In the near future the pair is set to decline down to the weekly S1, which is located at the 0.9493 mark. Afterwards the pair could go down to reconfirm a dominant pattern’s support level near the 0.9420 mark. The support line is also supported by the monthly S1 at the just mentioned level.
Meanwhile, traders should take into account that the lower trend line of the dominant pattern has already been touched on August 29.
The Buck recently fell below the support of the 61.80% Fibonacci retracement level located near the 0.9550 mark against the Swiss Franc. The passing of the retracement was long expected, as SMAs were pushing the rate lower.
In the near future the pair is set to decline down to the weekly S1, which is located at the 0.9493 mark. Afterwards the pair could go down to reconfirm a dominant pattern’s support level near the 0.9420 mark. The support line is also supported by the monthly S1 at the just mentioned level.
Meanwhile, traders should take into account that the lower trend line of the dominant pattern has already been touched on August 29.
Comment:
The 61.80% Fibonacci retracement level seems to have been left behind, as the buck falls against the Swiss Franc.
Trade closed: target reached:
The previous forecast for the USD/CHF came into reality just as expected. The pair found minor support in the weekly S1 only to decline further below. Afterwards the buck declined down to the support line of the dominant pattern, which is strengthened by the monthly S1 at the 0.9420 mark.
In accordance with the pattern a surge is set to occur. However, the previous support levels are set to provide resistance to the US Dollar in its rebound against the Swiss Franc.
Meanwhile, fundamental events might force a break of the dominant pattern.
The previous forecast for the USD/CHF came into reality just as expected. The pair found minor support in the weekly S1 only to decline further below. Afterwards the buck declined down to the support line of the dominant pattern, which is strengthened by the monthly S1 at the 0.9420 mark.
In accordance with the pattern a surge is set to occur. However, the previous support levels are set to provide resistance to the US Dollar in its rebound against the Swiss Franc.
Meanwhile, fundamental events might force a break of the dominant pattern.
Comment:
Comment:
The USD/CHF continues to trade exactly as forecasted by the Dukascopy Analytics team. Meanwhile, the recent developments have pressed for a review of the pair.
After the second rebound against the dominant channel down pattern’s lower trend line the currency pair has reached the upper trend line of the junior channel down pattern. In accordance with the technical theory the pair is set to break the resistance of the monthly PP and the trend line at the 0.96 mark.
Afterwards the rate should be slowed down by the 200-period SMA, as it surges up to the monthly R2 at 0.6993 and the 50.00% Fibonacci retracement level above the 0.97 mark.
After the second rebound against the dominant channel down pattern’s lower trend line the currency pair has reached the upper trend line of the junior channel down pattern. In accordance with the technical theory the pair is set to break the resistance of the monthly PP and the trend line at the 0.96 mark.
Afterwards the rate should be slowed down by the 200-period SMA, as it surges up to the monthly R2 at 0.6993 and the 50.00% Fibonacci retracement level above the 0.97 mark.
Trade closed: target reached:
The USD/CHF still remains one of the easiest to forecast currency pairs, as it move sin accordance with technical patterns, which are consistent with the easy to predict political global and US domestic events.
Most recently , as it was expected, the upper trend line of the medium term descending channel was broken. As a result of that the pair reached for the next resistance level, which is located just below the 0.97 mark. In addition at 0.97 the 50.00% Fibonacci retracement level is located at.
All in all, the recent surge has occurred in a narrow channel up pattern, which is aimed at still vaguely confirmed medium scale channel up patterns upper trend line. However, it is not likely to be reached soon due to the mentioned resistance levels near 0.97.
If the medium term channel's upper trend line gets reconfirmed, we will post and updated trading idea.
The USD/CHF still remains one of the easiest to forecast currency pairs, as it move sin accordance with technical patterns, which are consistent with the easy to predict political global and US domestic events.
Most recently , as it was expected, the upper trend line of the medium term descending channel was broken. As a result of that the pair reached for the next resistance level, which is located just below the 0.97 mark. In addition at 0.97 the 50.00% Fibonacci retracement level is located at.
All in all, the recent surge has occurred in a narrow channel up pattern, which is aimed at still vaguely confirmed medium scale channel up patterns upper trend line. However, it is not likely to be reached soon due to the mentioned resistance levels near 0.97.
If the medium term channel's upper trend line gets reconfirmed, we will post and updated trading idea.
That point can be used to adjust the lower trend line of the channel down pattern.