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USDCHF, Candlestick Analysis

1/6/2023 10:19 AM

USD/CHF, H4

On the four-hour chart, below the level of 0.9335, there is the formation of a Hammer candlestick analysis pattern, which warns of a price reversal upwards. In addition, the Dragonfly Doji and the Inverted Hammer figures should be singled out, signalling an upcoming price increase, as well as the likely achievement of the bottom by the asset, where the entire trend is reversing. This can be confirmed by the Bullish Marubozu pattern at 0.9335, which is characterized by an upward impulse candle and indicates a large volume of purchases at this level. The movement of the asset to the resistance level of 0.9442 will allow buyers to strengthen their positions to the levels of 0.9600-0.9748. An alternative scenario is possible if the "bears" overcome the key support level of 0.9335, then the price may fall even lower, to the zone of 0.9197-0.9025.


USD/CHF, D1

On the daily chart, the final formation of the Falling Wedge pattern is observed, from which an exit was formed, as well as overcoming its upper border with the help of a Bullish Marubozu candlestick pattern above the level of 0.9197. The implementation had already been confirmed before by Doji and Inverted Hammer reversal patterns, which formed at 0.9197 and herald an increase in the asset's price, warning of growing "bullish" strength. In the current situation, the main scenario seems to be the continuation of the upward dynamics to the resistance level of 0.9442, the overcoming of which will open the way for the "bulls" higher, to the zone of 0.9600–0.9748.


Support levels: 0.9335, 0.9197, 0.9025. | Resistance levels: 0.9442, 0.9600, 0.9748.

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