USD/CHF gravestone hampers bullish momentum but trend intact : FxWirepro | October 30, 2017

FxWirePro: USD/CHF 0.18% gravestone hampers bullish momentum, non-directional phase in major trend remains intact – Bid boundary binaries to leverage yields:

USDCHF’s major resistance levels are seen at 0.9990 and 1.0287 levels.

The major uptrend has been rejected at these major resistance levels several times in the past (refer daily trend).

Gravestone doji pops at around the same resistance levels hampering the previous buying momentum but on the contrary, the bullish DMA crossover puzzles trend (refer daily trend).

More rallies seem to be on the cards upon break out this stiff resistance zone of 0.9990/1.0287, leading oscillators signal buying sentiments even above overbought territory. RSI has historically, shown the faded strength at 65 levels (refer monthly charts) but showings strength even above 70s in daily terms. While stochastic curves have approached above 80 (which is bearish territory) but no convincing overbought sentiments.

On a broader perspective, USDCHF 0.18% major trend has been drifting range bounded phase, price behavior in the major trend slides back below range resistance (monthly chart) and bounce back as and when it touches range baseline and EMAs.

For now, it is attempting to breach above stated significant resistance levels.

This bullish sentiment is backed by the momentum signaled by leading oscillators on monthly terms.

Contemplating above daily bullish sentiment and the major trend in consideration, on trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 1.0038 and lower strikes at 0.9917 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX remains within these strikes on or before the binary expiry duration.

While the FxWirePro currency strength index for the USD has been bearish by flashing a shy above 64, while CHF has also been highly bearish by flashing -74.