USD/CHF 1.05 Support Holds

Daily: The USD/CHF completed a rounded top formation at the end of a bearish Gartley and the previous post was stalking its decline.

The market is now testing an important area. The 1.05 powerline is an important level to break below for a bearish market. A break spells another attempt to drop to parity level.

However the market is oversold and crossing over. For the short-term, there will be a bullish attempt.

If the market avoids paring in the US session, we may have a rally that should go back towards 1.07 area. Let's take a look at the 4H chart.

4H: The short-term look at the USD/CHF shows a bullish divergence with the stochastic.

Looking at the orientations of the MAs, we see a bullish mode in the Daily, and a bearish mode in the 4H. The weekly chart shows a bearish mode going back to 2002.

So although the 1.05 area has not cracked. Continue to anticipate attempts at cracking it. If it does, the projection could be conservatively the 1.00 area, and aggressively the 0.98 area.

On the otherhand a break above 1.07 is a very strong bullish signal.

I would therefore keep my eye on this pair near these areas, 1.07 and 1.05.

Capital Market Services, L.L.C.
www.cmsfx.com

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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.