USDCHF D1 sort of seems to have completed its correction near weekly resistance i.e 0.92700 and went for a dip breaking weekly below weekly and daily pivots with a strong bearish impulse which made the pair land near monthly pivot i.e 0.91450 while providing a low at 0.91320. We have drawn a rising wedge rather than calling it a bullish channel because of the previous bearish rally under the daily chart ended at 0.89250 and we know there is always a strong correction depending upon the length of the rally. Monthly pivot and strong support at 0.91000 is providing a strong support to the pair giving a feel of upside impulse from current market price and also analyzing the approach in which the bearish impulsive wave landed near 50% fibb retracement can also be another reason for a bullish reversal. Under the monthly time frame we can clearly observe a complex corrective structure between the levels 1.03216 and 0.87000 which can also be considered as a consolidating sentiment but as of for now nothing is certain until a closing below 0.91000 is witnessed.

BULLISH & BEARISH POSSIBILITIES/ CONDITIONS :

As ive explained above that the pair is around a major support zone by all means, including the corrective wave count along with the monthly pivot and 50% fibb level are calling for a bullish upcoming wave by dollar, specifically keeping the technicals inregard. RSI and MACD depicting signs of weakness as for the MACD is calling for shift of momentum onto the bearish side and might pull USDCHF towards 0.9600 and 0.9000 major supports with our lower trend line acting as an indication to position your buy entries. We will be observing if an impuslive retrace is seen above 0.92200 - will be considered as a breakout and the rising wedge will be turned into a bullish channel as a sign of hawkish rally in process. 

USDCHF D1

Jul 10 2021

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