USDCHF, “US Dollar vs Swiss Franc”
The current USDCHF situation and the outlook for the future may be explained by something that happened a month ago. On April 23rd, the pair was growing quickly and then stopped by the resistance at the 7/8 level, which is known as a spot where trading instruments usually stop and reverse. On that day, this was exactly what happened – the level stopped the pair and made it reverse. As a rule, in such cases the price resumes falling towards the support at the 0/8 level. By now, it hasn’t reached this target yet, but the downtrend may continue. At the moment, USDCHF is trading below the 3/8 level. Earlier, market players tried to prevent the pair from falling, but all that they managed to do was to make the price break the 3/8 level several times without fixing above it, which means that bulls were rather weak. As a result, the instrument may continue falling to reach the support at the 0/8 level. However, this scenario will no longer be valid if the instrument breaks the 4/8 level. After that, the pair may resume trading upwards with the target at the 7/8 level.
As we can see in the M15 chart, the pair has broken the downside line of the VoltyChannel indicator and, as a result, may continue moving downwards.
XAUUSD, “Gold vs US Dollar”
In case of XAUUSD, the situation is quite similar. The difference is that the quick rising impulse that started on May 13th stopped between the 6/8 and 7/8 levels. In this case, we should pay attention to the 6/8 level, which is known as a spot where trading instruments may trade for a while and then reverse. This is exactly what was happening from May 13th to 16th. After trading for some time at the 6/8 level, the pair formed a reversal pattern, which should result in a new decline towards the support at the 1/8 one. Right now, the pair is facing an obstruction at the 3/8 level. If the price breaks it, the pair may continue its descending movement to reach the above-mentioned support. However, this scenario will no longer be valid if the instrument breaks the 4/8 level. In this case, the instrument may resume trading upwards with the target at the 5/8 level.
In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue trading downwards.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.