The USDCHF faces contradicted factors – Analysis - 31-01-2020

The USDCHF pair faced negative pressure yesterday to break 0.9712 level and settles below it, as the EMA50 formed solid resistance barrier against the price, to block the recently suggested bullish scenario.

On the other hand, we notice that the price draws an inverted head and shoulders’ pattern, under construction now, shown in the minor image, which means that the chances valid to resume the bullish trend and achieve new gains in the upcoming sessions.

Therefore, this contradiction between the technical factors makes us stay aside until we get clearer signal for the upcoming trend, noting that breaching 0.9765 will complete forming the mentioned pattern and leads the price to achieve positive targets that start at 0.9836 and extend to 0.9915, while breaking 0.9680 will cancel the suggested positive formation and presses on the price to decline towards 0.9588 initially.

The expected trading range for today is between 0.9650 support and 0.9780 resistance.

The expected trend for today: Depends on the above mentioned levels