In today’s video, I break down a potentially strong bullish opportunity on USDCHF and why, with the right entry signal, we might see a solid push up towards 0.88 and eventually 0.92 in the weeks and months ahead.
First off, let's check the monthly chart. In April, price finally broke and closed below the major 0.84 support, a level that held firm since 2011. Below, I've marked the massive buy zone created around the 2011 lows—interestingly, depending on your broker, you’ll notice this zone was tested during the dramatic Swiss franc unpegging event back in 2015 as well.
But here's why I don’t think we’re headed down to retest that monthly zone anytime soon. Zooming into the weekly charts, we clearly see a key weekly buy zone. This was actually the origin point for the massive move up from the 2011 lows to 0.95. This exact weekly level is already proving its significance again, given the strong buying reaction we saw here in May.
Now, zooming further into the daily charts, we had a nice bounce at that weekly buy zone, pushing price back up to retest the previous support at 0.84. If the market truly wanted lower prices, we would've seen a sharp sell-off from there. Instead, price has slowly been grinding lower, forming a clear W double-bottom pattern—a powerful reversal signal.
This all points to higher prices ahead, especially considering USDCHF currently offers one of the most attractive swap carry opportunities due to the interest rate differentials and the SNB’s hints about possibly returning to negative rates to weaken the franc.
Here's my game plan:
Wait patiently for the next bullish daily candle with a clear close above 0.83.
My first target will be the 0.88 area (previous strong resistance and weekly sell zone).
The longer-term target will be around the 0.92 resistance zone.
My stop loss will be placed comfortably below 0.80. Should we spike lower to that level, I'll remain alert for another high-probability bullish entry signal.
Let me know your thoughts below!
First off, let's check the monthly chart. In April, price finally broke and closed below the major 0.84 support, a level that held firm since 2011. Below, I've marked the massive buy zone created around the 2011 lows—interestingly, depending on your broker, you’ll notice this zone was tested during the dramatic Swiss franc unpegging event back in 2015 as well.
But here's why I don’t think we’re headed down to retest that monthly zone anytime soon. Zooming into the weekly charts, we clearly see a key weekly buy zone. This was actually the origin point for the massive move up from the 2011 lows to 0.95. This exact weekly level is already proving its significance again, given the strong buying reaction we saw here in May.
Now, zooming further into the daily charts, we had a nice bounce at that weekly buy zone, pushing price back up to retest the previous support at 0.84. If the market truly wanted lower prices, we would've seen a sharp sell-off from there. Instead, price has slowly been grinding lower, forming a clear W double-bottom pattern—a powerful reversal signal.
This all points to higher prices ahead, especially considering USDCHF currently offers one of the most attractive swap carry opportunities due to the interest rate differentials and the SNB’s hints about possibly returning to negative rates to weaken the franc.
Here's my game plan:
Wait patiently for the next bullish daily candle with a clear close above 0.83.
My first target will be the 0.88 area (previous strong resistance and weekly sell zone).
The longer-term target will be around the 0.92 resistance zone.
My stop loss will be placed comfortably below 0.80. Should we spike lower to that level, I'll remain alert for another high-probability bullish entry signal.
Let me know your thoughts below!
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Join Telegram group -t.me/+T7V_JSiKKsliMTJl
30 Days, 30 Ways to 10X Your Trading Results Get free daily tips to transform your mindset, strategy, and consistency.
Sign up here → thetradingedge.net/30days
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.