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USD/CHF Stalking Gartley Completion
- Weekly and Daily: The USD/CHF is at an important support level.
- It is just above the 1.0000 area, which is psychological support.
- Moreover, this is 78.6% retracement in the weekly chart and the pair is completing a Gartley pattern at about this parity level.
- We can also observe that the pair has been oversold for a long time in the weekly, sustaining a decline since April, and continues to be bearish.
- In the Daily timeframe, we see that the recent downswing is nearing oversold levels too. The 1.0030 area is the previous bottom and is therefore a short-term support.
- Also in the daily, Candlestick action shows that the current bearish momentum has paused.
- There may be a short-term rally. If this rally is able to break above 1.0350 we may have a completed double bottom and a bullish signal. We will keep stalking.
USD/CHF Showing Bottoming Action
- 4H and 1H : In the 4H timeframe, we can see reversal candlestick combination rising from the 1.0050 area. Now it is testing breaking a medium-trendline, but we’ll have to see if it sustains.
- This 1.0030 bottom is a bit higher than the projected abcd pattern where ab and cd are the same.
- We also see in the 1H timeframe that the stochastic is overbought, and therefore we may have a short-term decline. The important thing is to see if the market can rally past 1.0125. This would be a short-term bullish signal that suggests possibility of retesting 1.0350.
Fan Yang
Currency Analyst,
Commodity Trading Advisor