USDCHF Near Term Target Seen Towards 0.9400/50

30 September 2020

USDCHF had carved a meaningful low around 0.9000 handle on August 31, 2020. The currency has since rallied through 0.9300 highs before pulling back. Bulls might have carved yet another higher low around 0.9190 levels and remain poised to push through 0.9400/50 in the near term.

USDCHF probable wave structure since 0.9000 lows is as follows: The rally from 0.9000 through 0.9200 was an impulse, hence potential Wave 1 in the chart here (not labelled). The subsequent drop through 0.9050 might be marked as potential Wave 2.

USDCHF further rallied through 0.9300 mark, which could be lower degree Wave 3 and the recent drop through 0.9190 could be Wave 4 respectively. If the above proposed wave counts hold true, USDCHF might be heading towards 0.9370/0.9400 as Wave 5 progresses.

Once the impulse rally completes around 0.9400 mark, USDCHF might prepare to produce a meaningful corrective drop towards 0.9200 mark, which is Wave 4 termination. Bulls are poised to remain in control for now and complete the impulse wave.

Alternately, if USDCHF continues to drop from here, the next support might come in around 0.9135 mark, the fibonacci 0.618 retracement of the recent rally between 0.9050 and 0.9300 respectively. Only a break below 0.9050 would change the above bullish structure.

Traders might remain inclined to hold long positions initiated earlier around 0.9050 mark and also look to add further around 0.9200 support. Protective stop might be placed below 0.9000 handle with projected targets towards 0.9400/50 in the near term.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In