By: John Ursus
Timeframe: W1 Recommendation: Long Position
Entry Zone: 0.9100 – 0.9125
Take Profit Zone: 0.9400 – 0.9425
Stop Loss Zone: 0.8900 – 0.8925
The USDCHF has corrected down into a very strong horizontal support zone and formed a double bottom as visible in the above W1 chart. This currency pair is now trading at the lower band of its horizontal support zone and the latest W1 candlestick has formed an inverted hammer formation which is a bullish signal.
Look out for a reversal from its current level which should take it back up to a very strong horizontal resistance zone above 0.9400. Expect the USD to continue to weaken after a temporary stage of short-term strength which could take this currency pair above its resistance zone and form a double top.