USD/CHF SHORT BIAS - Fib Level, Bounce off Daily Resistance
My bias for USD/CHF is SHORT. The pair has been in consolidation for over a year now, it is again trying to breach the strong daily resistance.
The candle before today is a shooting star, this is a good confluence.
The ascending trend line drawn has been broken in the last few days, so that's confluence to a bearish move, now just waiting for a clean bounce from the daily resistance level, once this is done I will take a short trade out.
I also drew a fib, the first level of profit should be reached at 0.382, then after this the second level should be back down at the monthly resistance level with the fib lined up perfectly with 0.618 at that level. But will assess the chart again after the first target is complete (if the price doesn't break the daily resistance).
So now we'll just wait and see if the price is rejected at the daily resistance or not before we take out a trade.
The candle before today is a shooting star, this is a good confluence.
The ascending trend line drawn has been broken in the last few days, so that's confluence to a bearish move, now just waiting for a clean bounce from the daily resistance level, once this is done I will take a short trade out.
I also drew a fib, the first level of profit should be reached at 0.382, then after this the second level should be back down at the monthly resistance level with the fib lined up perfectly with 0.618 at that level. But will assess the chart again after the first target is complete (if the price doesn't break the daily resistance).
So now we'll just wait and see if the price is rejected at the daily resistance or not before we take out a trade.
Comment:
Pay attention to the H1 and H4 charts for a better entry if the opportunity presents itself.
Comment:
Yesterday, due to low volume coming up to the new year there was a lot of market manipulation, which caused a large spike in favour of the short trade we have taken, however, the spike fell 15 pips short of our target and then retraced all the way back up towards breakeven level. I am still holding onto the trade as the price is still below the daily resistance level and the hammer candle is not credible because of market manipulation. Currently going lower, 20% of target achieved.
Comment:
40% of target achieved.
Trade closed: stop reached:
After the pair just missing my TP, it has reversed, and gone to the next resistance level, taking out my SL. You win or you learn.
Comment:
Would have hit TP had stop been wider.