USD/CHF has been held by a short-term downwards moving trendline since the 10th of May, but for the last couple of weeks the pair managed to flatten itself out and currently is showing us some sideways activity. The bulls continue to fight back against the bears and thus, we will remain neutral and wait for a break out through one of the key levels discussed below.
During the early European morning, the pair emerged above the 0.9870 line and a good move higher, towards the first good area of resistance at 0.9895 level, could bring back some hope for the bulls. A move above that level could open the path to the 0.9910 area or could even lead to a test of the aforementioned trendline. If the bulls remain in the driver’s seat, then a break of that trendline could become a reality. This could be seen as a positive development and more bulls could start joining in the action.
On the other hand, a strong move below the 0.9870 mark could open the doors for a test of the 0.9830 level, a break of which could be seen as a real feast for the bears. If the last-mentioned level is not able to withhold the downside pressure, then we could start targeting the next potential strong area of support at 0.9790, marked near the lowest point of last week.
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 Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers 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 analyzes 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 analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.
FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.
Copyright 2018 JFD Brokers Ltd.