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  • USD/CHF created a Doji candle on Thursday, neutralizing the immediate bearish setup. 
  • The pair needs to print gains on Friday to confirm bullish reversal. 

USD/CHF’s daily chart is teasing a bullish reversal pattern.

The pair created a Doji candle on Thursday, which is widely considered a sign of indecision in the market place. However, in this case, the candle has appeared following a notable sell-off from 0.9750 to 0.94 and is indicative of seller exhaustion.

A bullish reversal would be confirmed if the follow-through is positive – the pair ends Friday above Thursday’s high of 0.9460. 

The bullish reversal confirmation would open the doors to a test of the former support-turned-resistance of 0.9589 (May 1 low). 

The bias, however, would again turn negative if Thursday’s low of 0.9376 is breached. That will likely yield a sell-off to 0.9182 (March 9 low). 

Daily chart

Trend: Neutral

Technical levels

 

Expert score

5

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