For a moment, bears seemed to have took over in this pair however, with recent higher highs relative to the lower BB, I really think there is more room for some upswings.
Technically, that’s what I’m expecting now that we have a bullish candlestick confirming yesterday’s minor consolidation. Besides, look at how price action broke above the 200 period MA as prices inch towards the middle BB.
If you paste a Fibonacci retracement tool between Q4 2017 high low then you realize that prices are actually reversing from below the 78.6% Fibonacci level and as such, the best bulls can muster if test of December highs and that is where I’m angling as a bull. Of course, it won’t be a straight line but a couple of retracements along the way is attractive for those looking to buy on dips.
This temporary retracement is expected mainly at the 23.6% but any surge past this level and we are good to go.
In the 4HR chart, there is a clear bull break out after that strong bullish candlestick was printed. Of course you can go long but it’s better to enter once it closes. This is our usdchf trade plan:
Buy: 0.98
Stop Loss: 0.975
Take Profit: 1.00
Let me know what you guys think!

usdchf 4hr chart for January 9, 2018

Source: Dalmas

usdchf daily chart for January 9, 2018

Source: Dalmas

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.