Conclusion for today’s USDCHF technical analysis:
Price breaking above the upper boundary of the broadening formation implies higher prices in the USDCHF.
USDCHF analysis for today is carried out on the 6 hour timeframe. The current downtrend from April 26, 2019 to current date is the main focus with a bearish trendline used to provide perspective.
Price action currently closing above the trendline suggests a bullish bias. Also adding to further development of bullish momentum is price closing above its 6 hour timeframe 50 and 200 moving average.
A broadening formation that is currently under development (tentative) is also indicated on the chart with the upper and lower boundary of the chart pattern intersecting horizontal levels of support and resistance.
An important area of resistance between 1.00121 and 0.99769 is therefore crucial and should provide an excellent pivot for future development of price action in the USDCHF. A retracement of price to the resistance level that successfully closes above 1.00121, and also the upper boundary of the broadening formation implies higher prices in the USDCHF.
On the other hand, price reaching resistance and consolidating at or below the upper boundary of the broadening formation could provide room for more sellers and therefore lower prices in the USDCHF.
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