Technical Analytics Report

USD/CHF: Fibonacci Analysis Report 23 March 2021

USD/CHF: Fibonacci Analysis Report 23 March 2021

 

USD/CHF, D1

On the D1 chart, the price is trying to break below 0.9220 (23.6% retracement) and 23.6% ascending fan line, but unsuccessfully so far. If successful, the targets of a decline will be 0.9135 (38.2% retracement), 0.9067 (50.0% retracement), 0.9000 (61.8% retracement). The level of 0.9355 (0.00% retracement) is the key for the “bulls”. After its breakout, growth may continue to 0.9450. Technical indicators don’t provide a clear signal: Bollinger Bands are directed upwards, confirming the uptrend; but Stochastic is reversing downwards, and MACD histogram is reducing in the positive zone.

 USD/CHF, W1

On the W1 chart, the price has broken above the 38.2% line of the descending fan and is consolidating at the level of 0.9350 (38.2% retracement), but cannot break it yet. If the instrument consolidates above 0.9350, this will provide further growth to 0.9506 (50.0% retracement) and 0.9670 (61.8% retracement). Otherwise, a decline will resume to 0.9150 (23.6% retracement) and 0.9000 (the midline of Bollinger Bands). Technical indicators show opposing signals. Bollinger Bands are reversing upwards, confirming the possibility of a long-term trend change to an upward one. MACD histogram moved to the positive zone forming a buy signal. Stochastic is preparing to leave the overbought zone and to form a sell signal.

 Support and Resistance

For active trading, one should wait for the break of key levels. After the breakdown of 0.9220 (23.6% retracement, D1), a decline may continue to 0.9135 (38.2% retracement, D1, W1) and 0.9000 (61.8% retracement, D1; the midline of Bollinger Bands, W1). If the price consolidates above 0.9355 (0.00% retracement, D1), this will provide further growth to 0.9506 (50.0% retracement, W1) and 0.9670 (61.8% retracement, W1).

 Resistance levels: 0.9355, 0.9506, 0.9670.

Support Levels: 0.9220, 0.9135, 0.9000.

 Trading Tips

·         Short positions may be opened below 0.9220 with targets at 0.9135, 0.9000 and stop-loss at 0.9280. Implementation period: 5–7 days.

·         Long positions may be opened if the price consolidates above 0.9355 with targets at 0.9506, 0.9670 and stop-loss at 0.9280.

 Scenario

Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 0.9215

Take Profit: 0.9135, 0.9000

Stop Loss: 0.9280

Key Levels: 0.9000, 0.9135, 0.9220, 0.9355, 0.9506, 0.9670 

Alternative Scenario

Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 0.9360

Take Profit: 0.9506, 0.9670

Stop Loss: 0.9280

Key Levels: 0.9000, 0.9135, 0.9220, 0.9355, 0.9506, 0.9670


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