USDCHF Equilibrium| Structural Resistance| Declining Volume

Today’s Technical Analysis – USDCHF- trading in equilibrium where a break is imminent

Points to consider,
- Structural resistance (bearish retest)
- Declining volume
- Apex
- RSI at 50

A break in USDCHF will be imminent as price continues to reach its apex. The support and resistance lines will converge leading into a break in structure.

The structural resistance is a key level, a bearish retest will allow for a valid short. It is important to monitor how price action forms at the level as weakness will indicate a possible liquidity grab.

Volume is clearly declining, which is an indication of a true equilibrium. A breakout needs to be backed with increasing volume; this will decrease the probability of a false breakout.

Overall, in my opinion, if USDCHF breaks bullish, its immediate target will be structural resistance. If price action shows weakness and confirms a bearish retest, lower level will then be likely.

What are your thoughts?

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And remember,

“Do not anticipate and move without market confirmation—being a little late in your trade is your insurance that you are right or wrong.” -Jesse Livermore