Technical Analytics Report

USD/CHF: Fibonacci Analysis Report 19 May 2021

USD/CHF: Fibonacci Analysis Report 19 May 2021

 

USD/CHF, D1

On the D1 chart, the price has broken down all major resistances and is now testing the level of 0.8955 (61.8% ascending fan line). Its breakdown will give the prospect of price return to the point of the beginning of growth near 0.8783 (100.0% retracement). The level of 0.9110 (50.00% retracement) is the key for the “bulls”. After its breakout, growth may resume to 0.9185 (38.2% retracement) and 0.9280 (23.6% retracement). Generally, technical indicators show a continued decline: Bollinger Bands and Stochastic are pointing down, MACD histogram is stable in the negative zone. 

USD/CHF, W1

On the W1 chart, the price reversed down from the 50.0% line of the descending fan and broke down the levels of 0.9150 (23.6% retracement) and 0.9085 (midline of Bollinger Bands), which gives the prospect of further decline to 0.8825 (0.0% retracement). The level of 0.9150 (23.6% retracement, 23.6% line of the ascending fan) is seen as the key for the “bulls”. After its breakout, quotes may return to 0.9350 (38.2% retracement) or 0.9425 (50.0% ascending fan line). Technical indicators don’t provide a clear signal: Bollinger Bands are directed upwards, confirming the uptrend. Stochastic may soon leave the oversold zone and form a buy signal. MACD histogram is about to move to the negative zone and to form a sell signal. 

Support and Resistance

The continuation of the price decline towards 0.8825 (0.0% , W1) and 0.8783 (100.0% retracement, D1) seems more likely. After the breakout of 0.9110 (50.0% retracement, D1), the instrument may grow to 0.9280 (23.6% retracement, D1) and 0.9350 (38.2% retracement, W1).

·         Resistance levels: 0.9110, 0.9185, 0.9280, 0.9350.

·         Support levels: 0.8955, 0.8825, 0.8783. 

Trading Tips

Short positions may be opened below 0.8955 with targets at 0.8825, 0.8783 and stop-loss at 0.9030. Implementation period: 5–7 days. 

Long positions may be opened above 0.9110 with targets at 0.9280, 0.9350 and stop-loss at 0.9000. 

Scenario 

Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 0.8950

Take Profit: 0.8825, 0.8783

Stop Loss: 0.9030

Key Levels: 0.8783, 0.8825, 0.8955, 0.9110, 0.9185, 0.9280, 0.9350 

Alternative Scenario 

Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 0.9115

Take Profit: 0.9280, 0.9350

Stop Loss: 0.9000

Key Levels: 0.8783, 0.8825, 0.8955, 0.9110, 0.9185, 0.9280, 0.9350


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