USDCHF Up 4 Pips in Last Hour, Makes Big Move Relative to Two Week Trend; Entered Today Up For the 2nd Straight Day

Hourly Update

(Last Updated September 23, 2020 0:13 GMT)

At the time of this writing, USDCHF’s rate is up 4 pips (0.04%) from the hour prior. This move is a reversal from the hour prior, which saw price move down. As for the trend on the hourly timeframe, we see the clearest trend on the 100 hour timeframe. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

USDCHF End of Day Recap

Updated 00:30 GMT (04:30 EST)

USDCHF is up 33 pips (0.37%) since the previous day (opening today near 0.91453), marking the 2nd straight day an increase has occurred. Compared to its peers in the Forex, USDCHF gave its buyers a return that ranked 13th in terms of percentage change since the previous day. The price chart of USDCHF below illustrates.

USDCHF

USDCHF Technical Analysis

Notably, USDCHF is now close to its 20, 50 and 100 day moving averages, which may act as price barrier for the asset. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. Also of note is that on a 30 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 14 days USDCHF’s price has gone up 7 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDCHF, with 16 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 1.23, which is bullish. As for the rationale, technical traders seem to be citing the appearance of channel, gartley, trendline and wedge technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Not the best H&S pattern but, the fact that closes and lows from September 1 deep are higher and are on the same level as lows of July 31 and August 20 trigger only one thoght – USD will go higher….Exactly, a 5-wave ending diagonal (wedge), and each time USD jumped higher and pushed back by any resistance it tested the upper edge of the diagonal as support and each time it tested the support – USD jumped higher….Following the Head and Shoulders pattern, USD will most likely continue the uptrend.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram