- 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.
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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.
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