USD/CHF is in a corrective mode amidst sturdy bullish bias. Observe the opportunity to buy on dips when the correction is over in the demand zone.

Hi fellow traders! USD/CHF is currently retreating from the 1.0013 supply zone in a correction phase. Nonetheless, the bullish bias is still very powerful. Additionally, the market has strong expectations on the Fed's aggressive stance in raising interest rates. As a result, the current USD/CHF correction has the potential to create a buying opportunity in the demand zone.

usdchf chart 1

 

Analysis and Recommendation

Let's take a look at the following USD/CHF H4 chart below:

usdchf chart 2

Based on the H4 chart above, it has been pointed out that USD/CHF is corrected to test the demand zone around 0.9934 – 0.9877. With the bullish sentiment still strong, the demand zone has the potential to become a bouncing point before the price rises again toward the supply zone of 1.0013 – 1.0073. As such, see closely the opportunity to buy on dips when the price approaches the demand zone.

Be aware if the pair continues to move down until it clears the 0.9877 demand zone since the price will carry on with its corrective move toward the next demand zone which is located at 0.9813 – 0.9770 or even lower.

Therefore, set a long position at 0.9934 when the price manage to enter the demand zone and there is a bullish signal confirming it. Stop loss may be positioned on 0.9877, while the profit target on 1.0073.

Keep in mind to always use risk and money management before trading! In addition to make use of trailing stops, don't forget to exit the market as soon as you find a reversal signal!

USD/CHF key levels:

  • Resistance: 1.0073, 1.0013
  • Support: 0.9934, 0.9877, 0.9813, 0.9770