USDCHF Support Zone Is Around 08950/0.9000

19 August 2020

USDCHF might be close to carving a potential bottom after printing 0.9009 today. The currency is trading around 0.9030 levels as we prepare this article and should be looking to turn higher from here. A break above 0.9200 will confirm that bulls are back in control.

USDCHF probable wave counts are as follows: The entire drop from 1.0237 through 0.9000 levels seems to be corrective double zigzag (A-B-C- X-A-B-C) or W-X Y. Ideally, the entire structure could be a part of a larger degree triangle.

If the above proposed structure holds well, USDCHF might be preparing for a 3 wave rally that might exceed 0.9900 levels, going forward. Immediate price resistance on the daily chart is seen towards 0.9250, followed by 0.9470 and 0.9800 respectively.

Also note that the last drop A-B-C looks complete since Wave C has hit the fibonacci 1.618 levels around 0.9140 levels. A push through 0.9200 would certainly confirm that a meaningful low is in place around 0.9000 handle.

Looking at the lower degree, it remains possible that USDCHF drops to yet another low below 0.9009 before turning higher. The last wave lower seems to be in progress after terminating a triangle consolidation around 0.9122 levels.

Traders might remain poised to initiate fresh long positions from current levels (0.9030) or from lower levels (0.8970/80), with protective stops below 0.8900 and projected targets around 0.9800/0.9900 respectively over the next several weeks.

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.

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