Trading plan for USD/CHF for Jan 31, 2020

Posted On 31 Jan 2020

Technical outlook:

USD/CHF seems to have completed its downswing at 0.9613 levels and is now looking to produce a counter-trend rally towards 09850/60 levels, Please note that fibonacci 0.618 retracement of the entire drop from 1.0023 through 0.9613 is seen at 0.9850. Hence, the probability of a bearish bounce around those levels remain high. Looking at the recent wave structure from 0.9613 lows, the USD/CHF pair has managed to produce the first leg of a proposed counter-trend rally. Prices have found resistance at the fibonacci 0.382 retracement of the previous drop, before pulling back sharply. USD/CHF is seen to be trading around 0.9706/08 levels at this point in writing and should be looking to rally further up to 0.9850/60 levels as highlighted on the chart. Please also note that there seems to be a strong fibonacci convergence seen at 0.9760 levels and there could be a sharp bearish reaction. Resistance remains at 1.0023 levels and the bearish structure remains intact until prices stay lower.

Trading plan:

Aggressive: Buy @ 0.9700/10, stop @ 0.9600 and target @ 0.9850

Conservative: Sell @ 0.9860, stop @ 1.0023, target below 0.9600

Good luck!

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Trading plan for USD/CHF for January 31, 2020

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