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.
USDCHF due to the formation of a double peak rejecting the level of 1,800 from June 2001 moved south. After ten years, these declines reached the level of 0.7600, where in August 2011 a strong demand response appeared. Since then, we have been observing calm growths, which formed an upward wedge, which we broke thru the bottom in May.
Looking at the weekly chart, we notice that the market has been moving in a horizontal trend for a long time. As a result of the rejection of the lower limit of this consolidation, the rate reached the area of the previous upward trend line, where a supply reaction appeared in early November.
If the declines going on will continue, in the near future we could expect a test of local (orange) support zone. The scenario is also supported by the fact that due to the recent upward correction the market has reached the area of previously defeated support (now resistance), where the supply reaction has already appeared.
This scenario is also supported by the fact that due to recent declines, the market broke down from the growth channel. Since then, the course has been moving in consolidation. Considering that consolidation is a form of time correction, sooner or later we would expect to break the bottom the bottom and continuation of declines.
STO is a broker regulated by FCA and CySEC. It offers more than 300 financial instruments such as Forex, Indices, Oil, Stocks, Commodities and Bonds. STO clients have possibility to trade thanks to reliable MT4 and AFX FAST platforms. Check STO offer!
