1.0029 offers a potential sell zone for this market, traders...
USD/CHF:
Recent development observed H4 price endure and finally conquer 1.0000 (parity) to the upside, consequently unravelling the path northbound towards two layers of resistance at 1.0053 and 1.0029. What’s notable from a technical standpoint is 1.0029 also represents the 2016 yearly opening level on the weekly timeframe, and the H4 RSI indicator is seen hovering just ahead of its overbought value. Therefore, the fact price action halted at 1.0029 should not really come as much of a surprise.
Contrary to above, the daily candles are establishing support above a notable base at 0.9986 – note this support and resistance level boasts strong historical significance dating as far back as November 2017. Should the buyers continue bidding this market higher from here, the next area of resistance in sight falls in around a Quasimodo base at 1.0099.
Areas of consideration:
As H4 price tests resistance at 1.0029, while acknowledging its connection with the weekly timeframe, a selloff from here may be on the cards. To help overcome the threat of a push higher on the daily timeframe, traders are urged to exercise patience and see if the H4 candles form anything relating to a bearish candlestick pattern. The first downside target from this region will, of course, be 1.0000, followed closely by daily support priced in at 0.9986. Traders considering a sell between 1.0029/1.0000 should also ensure risk/reward is factored into the trading decision.
Today’s data points: US PPI m/m; US Core PPI m/m US Unemployment Claims; FOMC Members Clarida, Williams, Bullard and Bowman speak.
Recent development observed H4 price endure and finally conquer 1.0000 (parity) to the upside, consequently unravelling the path northbound towards two layers of resistance at 1.0053 and 1.0029. What’s notable from a technical standpoint is 1.0029 also represents the 2016 yearly opening level on the weekly timeframe, and the H4 RSI indicator is seen hovering just ahead of its overbought value. Therefore, the fact price action halted at 1.0029 should not really come as much of a surprise.
Contrary to above, the daily candles are establishing support above a notable base at 0.9986 – note this support and resistance level boasts strong historical significance dating as far back as November 2017. Should the buyers continue bidding this market higher from here, the next area of resistance in sight falls in around a Quasimodo base at 1.0099.
Areas of consideration:
As H4 price tests resistance at 1.0029, while acknowledging its connection with the weekly timeframe, a selloff from here may be on the cards. To help overcome the threat of a push higher on the daily timeframe, traders are urged to exercise patience and see if the H4 candles form anything relating to a bearish candlestick pattern. The first downside target from this region will, of course, be 1.0000, followed closely by daily support priced in at 0.9986. Traders considering a sell between 1.0029/1.0000 should also ensure risk/reward is factored into the trading decision.
Today’s data points: US PPI m/m; US Core PPI m/m US Unemployment Claims; FOMC Members Clarida, Williams, Bullard and Bowman speak.
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