From Investor to Scalper is a cycle of analysis in which we take one financial instrument and the analysis includes a detailed look at the value from the monthly/weekly chart to the H1/M15.
CHFJPY in result of declines going on since June 2015 has reached the area of an important 104.00 support coinciding with:
- measuring 61.8% of the Fibonacci correction from the last growth impulse
- measuring 50% of the Fibonacci correction from the entire previous growth movement,
where in October last year a demand reaction has appeared.
As a result of the increases that have been going on since that time, the rate reached the local resistance level – 50% of the Fibonacci correction from the last impulse, where the supply reaction appeared in July.
However, the decline did not last too long and reached only vicinity of 112.75. Since the rejection of this support, the pair has been moving in a horizontal trend.
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Looking at the H1 chart, we notice that from Wednesday the course moves calmly to the north. The relatively small dynamics of these increases may be supported by the fact that they are only a correction, after which we would expect return to declines. So the situation may look very interesting when the market reaches the nearest technical resistance.