The USDCHF currency pair reacted to the key support. Looking at the weekly interval, we can see that the pair delivered the corrective move with the same range as the one at the turn of July/September 2018. Although there is no clear trend here, we have recently seen higher highs and higher lows. There is still a lot of time until the week ends but if the pair finishes the week where it is now or higher, a bullish pin bar pattern would be drawn. Note that the downward move from the beginning of January 2019 was also halted there therefore one cannot rule out that buyers will take control over the market now.
Source: xStation5Looking at the lower time interval - D1, one can see the first candlestick pattern heralding a potential upward move. Bullish engulfing pattern was drawn yesterday. At the moment, the key resistance zone can be found around the 0.9860 handle, where one can also find 1:1 market geometry with the largest upward correction in the whole downward move started at 26 April 2019. In case this resistance is smashed, the market could quickly move to 1,0000. Note that in the past, the psychological 1.0000 handle often saw price reactions.
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Source: xStation5In the case of intraday interval - H1 - the FIbonacci retracement has been broken. Currently, the pair trades above the 23.6% Fibo level and may look to extend gains to 38.2% retracement level. On the other hand, the 50% Fibo level, coincides with the previously mentioned resistance zone. Having said that, bulls may find breaking above it challenging. The downward trend on the H1 interval has clearly slowed down. We can already see a higher high and the first higher low, which may herald an upward correction and potential trend reversal.
Source: xStation5
