KTM FX Daily: USDCHF strategy. Near-term downside may be limited
USDCHF may be running into an area of support defined by the following:
Back to the 17-month descending trendline
Retested and held the 200MA at 0.9740
Earlier swing low finds at 0.9735 coincide with 200EA(weekly)
The 14MA (monthly) finds at 0.9720, coincides with 38.2% fib reaction
On the H4, the A-B-C corrective structure of 0.9980-0.9800-0.9865 pointing to 0.9690.
In addition, the daily RSI study is at 30.00. An RSI study of 30 or below indicates an oversold condition. Whereas, the other underlying indicators RVI study is remaining bearish.
Based on the above information, we expect USDCHF near-term downside may be limited 0.9745-0.9690.
If the price respects the support zone, we could expect a decent rally to 0.9860,0.9900 and 0.9980. The erosion of the 0.9800 is highly encouraging the bulls. A break of this would be needed to initiate a more pronounced recovery to 0.9860 and to 0.9960.
Else caution will be ordered; if the pair does not rebound on these last levels 0.9700-0.9690, this would point a new downward wave towards 0.9630-0.9600 and 0.9525-0.9500 it’s 61.8% fib reaction.
Back to the 17-month descending trendline
Retested and held the 200MA at 0.9740
Earlier swing low finds at 0.9735 coincide with 200EA(weekly)
The 14MA (monthly) finds at 0.9720, coincides with 38.2% fib reaction
On the H4, the A-B-C corrective structure of 0.9980-0.9800-0.9865 pointing to 0.9690.
In addition, the daily RSI study is at 30.00. An RSI study of 30 or below indicates an oversold condition. Whereas, the other underlying indicators RVI study is remaining bearish.
Based on the above information, we expect USDCHF near-term downside may be limited 0.9745-0.9690.
If the price respects the support zone, we could expect a decent rally to 0.9860,0.9900 and 0.9980. The erosion of the 0.9800 is highly encouraging the bulls. A break of this would be needed to initiate a more pronounced recovery to 0.9860 and to 0.9960.
Else caution will be ordered; if the pair does not rebound on these last levels 0.9700-0.9690, this would point a new downward wave towards 0.9630-0.9600 and 0.9525-0.9500 it’s 61.8% fib reaction.