Swiss deflated by risk mode; reversal pattern forming on daily chart
The pair advances strongly on Friday after US-China trade deal provided relief and boosted appetite for riskier assets.
Reversal pattern is forming on daily chart after Thursday’s action was strongly rejected at the downside and Friday’s rally is about to complete the pattern.
Thursday’s daily candle with long tail underpins the action, along with rising momentum and stochastic which reversed from oversold territory and heads north.
Fresh bulls cracked pivotal barrier at 0.9687 (daily Tenkan-sen, also 50% retracement of 0.9761/0.9612 bear-leg), with daily close above here to generate bullish signal and expose targets at 0.9704 (Fibo 61.8%); 0.9744 (daily Kijun-sen) , with key barriers at 0.9761/69 (10 Jan high / Fibo 38.2% of 1.0023/0.9612 fall) expected to come in focus on stronger bullish acceleration.
Res: 0.9692; 0.9704; 0.9744; 0.9769
Sup: 0.9661; 0.9640; 0.9612; 0.9588