USDCHF bullish idea still valid

In a previous analysis we noted that at 0.89 USDCHF we prefer to be bullish with stops at 0.8850 and target at 0.90-0.9050. Price moved all the way to 0.8850 but at the end of the week price is back at 0.89. I believe bears need a break, that is why I continue to support this short-term trend reversal.

Exchange Rates 11.12.2020 analysis

Blue lines – bullish divergence

Green line – resistance

As long as price is below the green trend line resistance trend is bearish. However the bullish RSI divergence makes me expect a bounce towards the green trend line resistance around 0.90-0.9050. If next week USDCHF does not bounce strongly towards 0.90 then I do not believe we are going to see this bounce soon. Support and stop for our bullish view is now confirmed at today’s low at 0.8850.

Source: https://www.instaforex.com/forex_analysis/198819/

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