Hello traders! We hope you are having a beautiful day today. We want to show you and explain our full vision on the USD/CHF pair, detailing why we consider this pair to have bearish potential if certain conditions are met.
🔸 During the last two years, the price comes with a clear bearish behavior. We can see how it consistently generates lower highs and lows.
🔸 In this downward movement, we can draw two trend lines joining their corresponding levels, which gives us an expansive channel.
🔸 Price recently broke a relevant support zone, but failed to generate a strong bearish movement.
🔸Instead, what it has done is consolidate for approximately 4 months.
🔸 At this moment, it is facing the lowest level of the range. Of course, until this level is penetrated downwards we cannot say that the downward movement is confirmed.
🔸What we are expecting is a clear break to the downside.
🔸 If we increase the timeframe to a Weekly timeframe, and draw the horizontal support and resistance zones, we see that, in the event of this bearish breakout, there is a considerable distance to the next support. This scenario would allow us to lookfor numerous bearish opportunities.
🔸 During the last two years, the price comes with a clear bearish behavior. We can see how it consistently generates lower highs and lows.
🔸 In this downward movement, we can draw two trend lines joining their corresponding levels, which gives us an expansive channel.
🔸 Price recently broke a relevant support zone, but failed to generate a strong bearish movement.
🔸Instead, what it has done is consolidate for approximately 4 months.
🔸 At this moment, it is facing the lowest level of the range. Of course, until this level is penetrated downwards we cannot say that the downward movement is confirmed.
🔸What we are expecting is a clear break to the downside.
🔸 If we increase the timeframe to a Weekly timeframe, and draw the horizontal support and resistance zones, we see that, in the event of this bearish breakout, there is a considerable distance to the next support. This scenario would allow us to lookfor numerous bearish opportunities.