USDCHF Carves Bottom Just Below 0.9000

02 September 2020

USDCHF had dropped to 0.8998 levels yesterday before managing to reverse sharply. The currency is trading comfortably above 0.9100 handle for now and should be looking to continue further towards 0.9250 in the near term. Bulls might be inclined to stay in control from here.

USDCHF probable wave counts are as follows: The currency might have dropped from 1.0237 through 0.8998 in a double zigzag, corrective wave. Further, the last wave A-B-C also seems to be complete as prices dropped through fibonacci 1.618 extension.

If the above proposed counts hold well, USDCHF would be looking to push higher against potential support around 0.8998 handle. Immediate resistance is seen through 0.9250, followed by 0.9450; while support is around 0.8998 respectively.

A break above 0.9250 resistance would confirm that a major bottom is in place around 0.8998 and bulls are back in control. USDCHF might be well supported on intraday drops towards 0.9050/60 levels. Alternately, it could marginally drop below 0.8998 mark before resuming rally.

Going further, USDCHF might have completed lower degree impulse wave between 0.8998 and 0.9110 levels respectively. If the above holds well, we might see a corrective drop through 0.9050/60 levels, before resuming rally towards 0.9450, going forward.

Traders might be inclined to initiate long positions as price approach support zone around 0.9050/60 levels. The protective stops might go below 0.8998, while projected targets might be towards 0.9450 resistance in the next few trading sessions.

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