USDCHF Buying Opportunity | 24/11/2022
- On the H4 timeframe, USDCHF price is approaching a support zone at 0.94000 and we expect an upside retracement to the resistance zone at 0.96200. We have placed a stop loss at the next support level at 0.92800.
- Although gloomy US economic data and confirmation from the Fed that it will slow the pace of rate hikes from 75 bps to 50 bps in December pushed prices further down on 23 November, the news was in line with long established market expectations which had already been factored into prices. This indicates that the subsequent dip in price was the result of overselling that lacked a fundamental basis. We thus expect a price correction in the form of an upside rebound.
- Technical indicators all support our bullish bias. Stochastic RSI is in the oversold region. The PPO (red line) has crossed above the signal (blue line) from below. Price has violated the lower bound of the Bollinger Band where a break above the middle band could provide confirmation to the upside in prices.
- On the higher weekly timeframe, the overall upwards trend is confirmed by an inclined trendline.
- On the smaller M30 timeframe, we note that an upside price reversal has already taken place, following a period of consolidation. A falling wedge was also formed with a break to the upside, supporting the bullish bias.
- Although gloomy US economic data and confirmation from the Fed that it will slow the pace of rate hikes from 75 bps to 50 bps in December pushed prices further down on 23 November, the news was in line with long established market expectations which had already been factored into prices. This indicates that the subsequent dip in price was the result of overselling that lacked a fundamental basis. We thus expect a price correction in the form of an upside rebound.
- Technical indicators all support our bullish bias. Stochastic RSI is in the oversold region. The PPO (red line) has crossed above the signal (blue line) from below. Price has violated the lower bound of the Bollinger Band where a break above the middle band could provide confirmation to the upside in prices.
- On the higher weekly timeframe, the overall upwards trend is confirmed by an inclined trendline.
- On the smaller M30 timeframe, we note that an upside price reversal has already taken place, following a period of consolidation. A falling wedge was also formed with a break to the upside, supporting the bullish bias.
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