Today we will look at the technical picture for another main and quite interesting dollar/franc currency pair. Despite the middle of the trading week, we will recall the events of the last five-day trading week.
Weekly
As you can see, according to the results of trading on August 2-6, the "Harami" candlestick analysis model appeared on the weekly chart. The main feature of this model is the appearance of the last candle inside the body of the previous one. This model is far from the strongest reversal candle figure, especially since it did not appear after a long downward movement. Nevertheless, the market has started working on it, and the USD/CHF currency pair shows a confident strengthening. It is worth noting that after the decline to the most important technical and psychological level of 0.9000, the pair quite expectedly found strong support here and turned north from 0.9017. Another important point is that trading on USD/CHF is still being conducted within the weekly cloud of the Ichimoku indicator.
However, as can be seen on the chart, the quote is rushing to the upper border of the cloud, the exit from which will undoubtedly be hindered by the black 89 exponential moving average, which passes at 0.9283 (slightly above the important and strong resistance level of 0.9273). Thus, the bulls on this instrument will first need to break through the level of 0.9273 and then 89 EMA. If this condition is met, the price exit up from the weekly cloud of the Ichimoku indicator becomes relevant. Bear pairs have an equally difficult task. They will need to make a true breakdown of the key level of 0.9000, with mandatory fixing under it. Judging by the situation developing on the weekly chart, the most likely scenario looks like an upward one. However, as already noted, everything will depend on the ability of players to overcome the mark of 0.9273 and 89 exponential to increase.
Daily
There is a bullish picture on the daily chart. After Friday's strong data on the US labor market, the pair soared to the upper limit of the Ichimoku daily cloud but did not have time to get out of it. But in the first days of the current five-day trading week, the pair continued to rise. And on Monday, the pair powerfully and confidently went up from the daily cloud. At the same time, it should be noted that all the obstacles were passed very confidently in the form of the red Tenkan line, 89 EMA, 50 MA, the blue Kijun line, and the 200 exponential moving average, colored orange on the chart. At this point, it is recommended to consider purchases as the main trading idea for USD/CHF. However, since the quote is already near the resistance at 0.9273, it is not the best time to buy. You can try to open long positions after a corrective pullback to the area of 0.9210-0.9180. A confirmation signal for purchases from the designated area will be the appearance of bullish candlestick analysis models on four-hour or hourly timeframes.