USDCHF Holds Support At 0.9000 Handle

16 September 2020

USDCHF might be ready for the next Bull Run towards 0.9500 mark over the next several weeks. The medium term outlook might be indicating that bulls are going to stay here until prices remain above 0.9000 handle. Watch out for Wave 3 rally to resume anytime soon.

USDCHF short term wave structure is as follows: The currency had dropped marginally below 0.9000 levels before turning higher. Further, the rally continued to unfold as an impulse and pushed through 0.9200 resistance. Bulls successfully registered themselves here.

The rally between 0.9000 and 0.9200 could be labelled as lower degree Wave 1 (not displayed on the chart here). Going further USDCHF declined towards 0.9050 mark potentially as a corrective wave. Also note the drop has found support near the fibonacci 0.618 retracement of Wave 1.

Also note that USDCHF has tested the backside of previous resistance trend line, which should act as support going further. As a standard, classic Head and Shoulder pattern is also unfolding and bulls might remain in control until 0.9000 (Head) remains intact.

At a larger degree, USDCHF has completed its corrective drop that had begun since 0.9900 levels. Ideally, the entire drop could be retraced and bulls might want to push through 0.9900 resistance over the next several weeks to come.

Traders might be willing to initiate long positions around current price levels (0.9075), with a protective stop below 0.9000 and projected targets above 0.9500.

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