USDCHF Bullish medium-term. 1D MA50 as the Resistance.

Jul 5, 2022

The USDCHF pair has been wild on high volatility ever since the May 16 market top as within 45 days it has formed big swings of Highs and Lows within a newly developed Channel Down. At the moment the price is on a three day rebound on the Lower Lows trend-line of the Channel and more importantly the 1W MA200 (red trend-line), which is acting as a Support since the April 21 break-out.

As you see the long-term trend is a Bullish Channel which on the May 16 High broke to the 1.236 Fibonacci extension. The 1W RSI since the start of that Channel suggests that we are on optimal (near the Higher Lows trend-line) long-term buy levels. A closing below the 1W MA200 could target the 1D MA200 (orange trend-line), as it has consistently over the past 12 months. At the moment a good strategy on the short-term could be to buy targeting the 1D MA50 (blue trend-line) and then wait for a pull-back. A 1D candle close above the 1D MA50 can be taken as a bullish break-out signal towards the Lower Highs (top) trend-line of the newly formed Channel Down.



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