Trading plan for USD/CHF for December 31, 2020

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Technical outlook:

USDC/HF might have carved a bottom just above the 0.8800 levels today or is very close to carving soon. The single currency pair is seen to be trading around the 0.8818 levels at this point of writing and is expected to resume the rally towards the 0.9200 levels over the next few weeks.

Immediate price resistance is seen towards 0.8920, while intermediary support comes in at the 0.8800 levels respectively. A breakout above 0.8920 would also confirm that bulls are back in control and a meaningful bottom is now in place. Please note that USD/CHF has been in downtrend since March 2020 highs around the 0.9900 levels.

The overall bearish trend looks to be mature now, and USD/CHF is expected to produce a meaningful corrective rally at least towards the 0.9500 mark, which is fibonacci 0.618 retracement of the entire drop between the 0.9900 and 0.8800 levels respectively. Bulls might be inclined to take control back over the next several weeks.

Trading plan:

Remain long with stop below 0.8700, targeting at 0.9500.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com