27.12.202112:34 Forex Analysis & Reviews: Technical analysis for USD/CHF on December 27

Greetings! Today, we will analyze the technical indicators of another currency pair - USD/CHF. Today is Monday. This is why we will start the technical analysis of the dollar/franc pair by having a look at the weekly chart.

Weekly

Judging the chart, traders are hesitant to pick up a trend now. As seen, recently the pair has been showing its growth for two weeks in a row, followed by a two-week decrease. In particular, at the session held on December 20-24, its rise was limited by the black 89 exponential moving average, which moved at 0.9254. It is also recommended to pay attention to the red line of the Tenkan Ichimoku indicator. I believe that it played a big role in the reversal of the pair and its subsequent decline. Moreover, the pair ended last week below the blue Kijun line. The rice is trying to approach this line now. Therefore, at all costs, bulls need to push the price above the Tenkan line and close above the 89 EMA. If this scenario comes true, the price is likely to rise to 0.9300, 0.9360, and 0.9400. If the downward scenario persists, the pair may fall to the 50 simple moving average, which is moving at 0.9150. This is a fairly strong level. The 50 moving averages pass there, which may facilitate the creation of the support level for the pair to rebound.

Daily

On the daily chart, the pair has declined below the lower boundary of the Ichimoku indicator cloud and closed two consecutive candlesticks below the strong orange 200 exponential average. Today, at the moment of finishing this article, the dollar/franc is trying to return above 200 EMA. We will find out whether the attempt has been successful or not only after the end of today's trading session. Currently, the price is already trading above 200 EMA. However, it will soon face a strong level of 0.9200. It also needs to test 50 MA and 89 EMA. Considering that the lower boundary of the daily cloud also passes a little higher, the odds that the price will be able to break above this level are extremely slim.

Tips for trading USD/CHF

Due to the unclear singles of technical analysis for this pair, both short and long positions are likely. To open short positions, we need to see reversal candlestick patterns near the 0.9200 and (or) 0.9250 mark at this or smaller time frames. To open long positions, it is better to wait for a short-term pullback to the 0.9180-0.9170 area and bullish candlestick signals. I do not recommend placing orders at high levels. The market is now thin and unpredictable.

Good luck!