USDCHF – LONG – 25th July 2017

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The daily chart has been in a down trend for some time however there is a strong demand zone at 0.9445. We can see that as price approach this area the momentum slowed down and an inside bar was formed. Following this a strong bullish candle was printed which closed on its high. This is confirmation that the prior demand zone is being respected once again. MACD divergence is also present across the recent swing lows. Our bullish bias is confirmed.

 

 

 

 

 

 

 

 

 

 

 

 

The hourly chart is also showing MACD divergence and with price making higher lows. We also see a close above the 50EMA

Our entry long will be on a return to the pivot with suitable price action to trigger the entry. Stops placed below S1 with a target at R1.