-INTRODUCTION- USDCHF has recently reached a new high at the 1.0060 level. After reaching a new high, the price retraced, and now aims to retest the 0.9600 support level. This is a very healthy pullback and we expect the price to arrive at somewhere in between 0.9400 ~ 0.9500 level. This area is the previous resistance level from where the price has broken up to reach a new high and also the 61.8% ~ 78.6% Fibonacci retracement levels.
-TRADING PLAN- In the chart, we can see the price is moving within an ascending channel. From the bottom, the price often formed a reversal pattern, followed by a breakout and then a retest of the neckline before moving higher. Therefore, from the area of interest, we will look for a reversal pattern. After a breakout, we will then enter our buy orders at the neckline level to capture the retest.
Check out our ongoing and previous pullback trading strategies below :)