The USDCHF pair is providing signs of downward price action in the coming weeks. The price has been trading in an upwards channel since early August. However, prices have recently broken the bottom support and bounced off it on a retest.
A few patterns and indicators give us confidence of future downward price action.
Channel support break and retest
MACD histogram supporting downwards action
Break of 4hr 50MA is likely to act as resistance.
RSI divergence has been forming since the beginning of September.
Head and Shoulders pattern seems to be forming. Confirmation of this pattern gives us a short target of around 0.9732.
While I usually trade solely off technical and not news, It is hard to ignore the current political climate in the USA, which only add confidence to the trade idea.
If you are not short already, watch for a break of the neckline.
Happy Trading.
A few patterns and indicators give us confidence of future downward price action.
Channel support break and retest
MACD histogram supporting downwards action
Break of 4hr 50MA is likely to act as resistance.
RSI divergence has been forming since the beginning of September.
Head and Shoulders pattern seems to be forming. Confirmation of this pattern gives us a short target of around 0.9732.
While I usually trade solely off technical and not news, It is hard to ignore the current political climate in the USA, which only add confidence to the trade idea.
If you are not short already, watch for a break of the neckline.
Happy Trading.
Let the algo show you its hand.