The USD/CHF currency pair, on the H4 chart, has been in an uptrend since the 28th of February. The buying pressure started when a bottom was reached at 0.99268 and buyers found the price attractive at that levels. The market broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke the zero baseline, confirming the weakness of supply in the market and indicating a possible technical reversal.
The bulls kept on building upward pressure and a very strong bullish candle on the 5th of March confirmed the presence of robust demand. It also created a critical resistance level and sellers tried to drive the market down. The occurrence of a Hammer Candle soon after indicates however that they could not gather enough backing.
If demand continues to overwhelm supply and the critical resistance level at the top of the strong bullish candle at 1.00561 is broken, then three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible continuation at 1.00561 and dragging it to the bottom of the Hammer Candle at 1.00304, the following targets may be calculated. The first target can be anticipated at 1.00721 (161.8%). The second price target can be projected at 1.00978 (261.8%) and the third and final target might be expected at 1.01395 (423.6%).
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/CHF currency pair will remain bullish.
The bulls kept on building upward pressure and a very strong bullish candle on the 5th of March confirmed the presence of robust demand. It also created a critical resistance level and sellers tried to drive the market down. The occurrence of a Hammer Candle soon after indicates however that they could not gather enough backing.
If demand continues to overwhelm supply and the critical resistance level at the top of the strong bullish candle at 1.00561 is broken, then three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible continuation at 1.00561 and dragging it to the bottom of the Hammer Candle at 1.00304, the following targets may be calculated. The first target can be anticipated at 1.00721 (161.8%). The second price target can be projected at 1.00978 (261.8%) and the third and final target might be expected at 1.01395 (423.6%).
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/CHF currency pair will remain bullish.