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USDCHF Falling Wedge Formation
Written by: PaxForex analytics dept - Sunday, 10 March 2013 0 comments
The USDCHF has corrected last week and dropped below its 200 DMA support level as visible in this H4 chart. This currency pair has formed a falling wedge formation and price action is focused on its descending support level. During the correction the 50 DMA as well as 200 DMA completed a bearish cross which may point to future weakness. We call this forex pair higher and expect a rally back into its descending 50 DMA in order to test this level before it could be headed for new lows. MACD has formed a positive divergence and supports calls for a minor counter-trend rally as momentum improves. RSI has formed a positive divergence as well while it also trades in
oversold territory. We recommend a long position at 0.9300 with a potential second entry level at 0.9225. In addition we advise traders to place a stop sell order at 0.9250. Traders who wish to exit this trade at a loss are advised to place their stop loss level at 0.9225. We will not use a stop loss order for this trade and will execute the trade as recommended. Place your take profit level at 0.9375. Here is why we call the USDCHF currency pair higher
USDCHF has formed a falling wedge formation and price action trades at support