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Technical analysis: CHFPLN

14:32 10 July 2019

Summary:

  • CHFPLN is trading within a wide consolidation range
  • Daily chart hints at buyers being in favor
  • Intraday traders should pay attention to 1:1 market geometry
 

The CHFPLN currency pair has been trading sideways for a long time. To be precise, the pair is trading in between the support at 3.73 handle and the resistance at 3.86 since September 2018. As no catalysts for the bigger prices moves can be spotted, range trading remains the base case scenario when looking at the weekly frame.

Source: xStation5
 

However, when the lower time frame - D1 - is concerned, an upward trend has been observed recently. We are observing increased activity of market bulls from 23 April. The pair is getting closer and closer to this year's highs(observed at the end of March 2019). It should be noted that each, subsequent test of the resistance level increases the risk of breaking higher.  The upward sloping trendline has provided the pair with a support recently and as long as the price remains above, the upward scenario applies. However, in case we observe a break below the trendline, the bigger downward correction may be on the cards. In such a scenario the next support zone can be found in the vicinity of 3.78. 

Source: xStation5

 

As for the intraday situation - H1 interval - traders should focus on the range of the latest correction moves. As the last two correction moves were equal in size.. The nearest key support is localized at 3.8250 handle. The latest confirmed high, 38.2% Fibonacci retracement and market geometry (1:1) with the previous correction move (yellow rectangles) can all be found there. As long as the market stays above this hurdle, the short-term trend is upward and buyers should be in market’s favour.Source: xStation5

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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