The USDCHF has corrected after it ran into its 200 DMA and currently dances around its new temporary support level as visible on this H4 chart. The last ten candlestick patterns have indicated a new support level and we believe this pair will use it to launch a small rally.
MACD confirms the formation of a new support level and RSI has traded in extreme oversold territory for an extended period of time. Look out for a breakout into oversold territory and above which should accelerate the rally.
We recommend taking a long position at 0.9170 with no additional entry level at this time as we believe the correction has been overstretched. Traders who wish to exit this trade at a loss are advised to place their stop loss level at 0.9100. We do not use stop loss levels and will remain in this trade until it reaches its take profit level which should be placed at 0.9240.
