Published On: Wed, Mar 1st, 2017

USD/CHF: Fibonacci analysis


The correction to the area of 1.0030 is possible.

On the 4-hour chart the price has tested the strong correction cluster 1.0030 for some times and now is moving to the “bullish’ key level at 1.0120-1.0135. However it can’t break it in the short term. Furthermore, according to the Stochastic readings, which reached the overbought zone, the correction to 1.0030 and 1.0000 (correction 50.0%) is possible.

On the daily chart the price is slightly growing along the correction fan line 38.2% to the level of 1.0120 (correction 23.6%), which was tested twice in the month. If the price is set above it the growth to the levels of 1.0200 and 1.0295 is possible in the middle term. In case of the downward breakout of the middle line of the Bollinger Bands, fan line and correction 38.2% at the area of 1.0010 the further growth the level of 0.9920 (correction 50.0%) and 0.9830 (correction 61.8%) is possible.

Trading scenario

Open short positions in case of reversal consolidation of the price below 1.0083 or from the level of 1.0120 with the target at 1.0030, 1.0000, 0.9920. Stop loss is at 1.0100 and 1.0150 correspondingly.

Alternative scenario

Buy the pair in case of price consolidation above the level of 1.0135 with the target at 1.0200, 1.0290 and stop loss at 1.0100.

Forex Analysis

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