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CHFJPY tests a weekly support zone. What's next?

Monday, October 22, 2018 10:56 AM GMT

The Swiss trade surplus was the largest since April (Previous: 2.079M, Actual: 2.434M), while Japanese annual inflation rate edged down to 1.2% (Previous: 1.3%). Today’s agenda doesn’t include any major economic news for the pair CHFJPY, so traders should not expect major volatility during this session.

Reviewing the weekly technical aspect, the pair seems is currently bouncing within the support zone, while it is respecting the trendline (T1). At the same time RSI is moving within 40 to 50 area, which acts as a support zone during an uptrend.


Heading to the daily timeframe, RSI escaped from the oversold territory, while Stochastics has already formed a positive divergence.


A breakout above the 113.20 maybe offers a bullish opportunity targeting around 114 level. On the other, if price violates the trendline (T1) to the downside, then the setup will be possibly invalid.

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.

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