USDCHF Analysis – April 29, 2020.
The USDCHF pair hit resistance on its way up at around 0.9794, which lead to a turnaround. This was without a retest of that level, forming two peaks. After this, price moved down to find support at 0.9725, about 70 pips from the last peak.
Price bounced from the support, rallied and formed a mini double top pattern which drove the price down to the support.
Provided the price breaks through the support, we would see more downward action, as price moves to the next support.
Traders can sell this pair once price breaks below the support and set profit target at about 40 pips, before the next support.
Support and resistance should be viewed as zones, rather than been viewed as exact points where the market will pause before continuing its movement or reversing.
This recommendation is further supported by a moving average crossover signalling a downward turn of prices. Do note that this is analysis is a short term one.
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