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A potential scenario for CHFJPY

Tuesday, October 16, 2018 10:47 AM GMT

Yesteday, the actual Japanese Capacity Utilization was increased to 101.40 Index Points in August from 99.20 Index Points in July. On the other side, the Swiss Producer and Import Prices in September confirmed the -0.2%, unrevised from a preliminary estimate of 0.1%.

Looking at the weekly timeframe, CHFJPY was is in a correction mode after testing the trendline (T1) and retracing back to trendline (T2). Currently, the pair is flirting with the support zone, which comes in confluence with the trendline (T2). Both are indicating a potential reversal, while RSI is following the trendline (T3). The RSI’s 40 to 50 zone is supposed to act supportively during an uptrend. 


Heading to the daily timeframe, the pair broke out the trendline (T4) to the upside, while RSI moved away from the oversold zone. From now on, the market probably may offer buying opportunities for the Bulls.


On the other hand, if price violates the trendline (T2) to the downside, then setup is not valid.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.  

Today’s agenda doesn’t include any economic data, so it is not expected highly volatility during the day.

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