EUR/CHF Bearish Bat Pattern

FX:EURCHF   Euro / Swiss Franc
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EUR/CHF Bearish Bat Pattern

A large bearish bat pattern formation for EUR/CHF on the
weekly time frame. Price has been rejected at the 78.6%
Fibo retracment level and now it seems that price will
re-test this level.

It seems likely that a double top could be formed, also
supporting this is the clear RSI divergence as indicated below.

Below there is still the matter of a large GAP dating back
to last years French election; I personally don't see how
this pair could continue a bullish path without the closing
of the GAP. The close of the GAP is just under the 38.2%
Fibo retracement, thus, a significant level for a bullish
trend continuation from that level.

A close below the highlighted significant support level
would most likely drive this pair to parity or lower (good
for me living in Switzerland).

Three short trades up for grabs (all in a 2:1 RvR ratio)

Trade 1
Entry: Price rejection at 1.1833 or 1.1807
S/L: 1.2062
T/P: 1.14466

Trade 2
Entry: Close below 1.14466
S/L: 1.16130
T/P: 1.0580

Trade 3
Entry: Close below 1.10570
S/L: 1.2456
T/P: 1.06798

Take profit levels 2 and 3 are measured objectives of
potential double top: head 1.0833 & neckline 1.14466

Alternatively one could also start shorting this pair
immediately from looking at the tiny Doji candle formed
this past week; should you choose to do so place stops above
1.1833 and T/P at 1.14466

Beware that this pattern will become invalid if price closes
above 1.21685.

Happy trading
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