USD/CHF, H4

On the four-hour chart, quotes of the USD/CHF pair are moving as part of a long downward trend, holding around 0.8910. At the levels of 0.8828–0.8910, Hammer, Inverted Hammer, Bullish Marubozu and Bullish Engulfing reversal candlestick analysis patterns are observed, which signal a likely upward price reversal with increased tick volumes. In the near future, the "bulls" may attempt to restore lost positions to the resistance level of 0.8991, overcoming which will lead to a change in the upward trend and allow buyers to head higher, to the area of 0.9154–0.9251. An alternative scenario is possible if pressure from sellers continues and the price consolidates below the key support line of 0.8828; then the movement will intensify to the level of 0.8560.

USD/CHF, D1

On the daily chart, after a long upward trend, a correction is most likely forming, within which the price tested the dynamic support level of 0.8828. The desire of market participants to reverse quotes upward is due to the formation of the Morning Star candlestick pattern at this level, which confirms the advantage of the "bulls". Most likely, the USD/CHF pair will continue to recover to the level of 0.8991, overcoming which will become a catalyst for opening long positions with targets of 0.9154–0.9251.

Support and resistance

Support levels: 0.8828, 0.8729, 0.8560.

Resistance levels: 0.8991, 0.9154, 0.9251.

Trading tips

Long positions can be opened above 0.8991 with targets at 0.9154, 0.9251. Stop-loss — 0.8931. Implementation time: 9-12 days.

Short positions can be opened below the level of 0.8828 with targets at 0.8729, 0.8560. Stop-loss — 0.8888.