Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USD/CHF moving up within the triangle pattern
Information is not investment advice
On the H4 chart of USD/CHF, we may see the following picture. Since the beginning of the last week, the USD has been dropping against the CHF, leaving the resistance level for the bulls at 0.9967. The support level of 0.9842, formed by the previous low, was not reached. But the price pinched through 0.9857 and bounced up from 0.9870, leaving it as the last support level. This altogether appears as a forming triangle pattern.
The RSI indicator has been following the same direction. If we see the last high of the USD/CHF, it corresponds with the same for RSI, which touched the overbought level of 70% a week ago and started dropping. It crossed the oversold level of 30% upside-down at the same time when the currency pair reached its low and started moving up.
The above gives us reasons to think that the price may be moving up to the next resistance of 0.99436, and then is likely to bounce back down.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.