Last week I analysed EURUSD at high intervals of monthly and 1-weekly MN, so far the quotations have been above the decision-making level of 1,1060 and more and more factors indicate that the forecasted growths may soon become a fact. On Wednesday we will hear the FED’s decision concerning the level of interest rates in the USA, which may undoubtedly make the volatility more dynamic on USD pairs. Today I have looked at USDCHF and analysed the lower intervals H4 and H1 for a change.
The previous week and the beginning of the current week brought a return to the defeated channel support. Currently, the last two H4 candles have formed the Inside Bar pattern. It is worthwhile to observe the direction of the breakout, because it may indicate the end of the upward correction and the return to declines, especially as the MACD has set the maximum and starts to decrease.
On chart H1 we can see that the correction of the last falls took the form of a growth channel. If the breakout from the IB (from chart H4) is a downward one, the goal may be the support of the channel, and after the breakout the nearest demand zone starting at 0.9915. MACD is also in a downward phase. However, if a breakout thru the top occurs, the parity level of 1,000 is within the reach of this pair, because there would be confluence of resistance and supply zone.
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