From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with 5/15 minutes.
USDCHF currency pair from the very beginning of their trading moves to south though the last dozen or even dozens of years can be observed a slowdown and weakness of supply.
Looking a little more closely at the current market situation. On the monthly chart we observe that for almost six years the market moves very calmly to the north forming a ascending wedge formation.
On the weekly chart, we see that for vast majority of the year, market fluctuated around the lower limit of the formation, but due to the emergence of strong demand response in November ultimately rejected this support. The current growth could reach level of resistance area at 1.0300 or even the upper limit of the wedge ,but while taking into account the decisive weakness of demand in recent times, we could expect a correction earlier in the vicinity of the level 0.9960 coinciding with the measuring 38.2% Fibonacci correction of the last bullish impulse.
Looking at the daily chart, the previously mentioned downward correction seems to be even more likely due to a number of upper shadows on the candlestick chart, which indicates a strong weakening of the supply. Bearish scenario is additionally supported by the fact that since defeated in mid-November level of 0.9950 has not been tested yet as support.
At the chart H4 for more than two weeks we have consolidation and whether growth will continue or may occur a downward correction will depend on whether resistance around 1.0190 or support 1.0080 will be broken.
On the M30 chart we see strong demand response rejecting the lower limit of the aforementioned consolidation. If the growth will continue, the potential supply response could be expected in the vicinity of the zone of resistance around the level of 38.2% Fibonacci correction of today’s declines.
