USDCHF Short Within Channel: Sell The Retest of Broken Structure
USDCHF is showing signs of further bearish movement.
As you can see price has currently found resistance at the upper level of the falling channel creating a double top reversal pattern.
Additionally, we have a significant ascending support line (blue) that has been broken to the downside.
Overbought RSI with clear divergence also suggests a trend change.
Entry:
I plan to sell the retest of the broken structure level.
Take a look at the previous bearish impulse (pink) and pay attention to how price reacted after breaking the ascending support level (blue). We have a clear retest of structure before price continued down.
Stop Loss:
My stop loss will be set above the most recent level of resistance 1.01, where price formed a double top.
Take Profit:
My take profit target will be based on the 1.272 extension of the larger bearish impulse leg, as well as the most recent level of support.
As you can see price has currently found resistance at the upper level of the falling channel creating a double top reversal pattern.
Additionally, we have a significant ascending support line (blue) that has been broken to the downside.
Overbought RSI with clear divergence also suggests a trend change.
Entry:
I plan to sell the retest of the broken structure level.
Take a look at the previous bearish impulse (pink) and pay attention to how price reacted after breaking the ascending support level (blue). We have a clear retest of structure before price continued down.
Stop Loss:
My stop loss will be set above the most recent level of resistance 1.01, where price formed a double top.
Take Profit:
My take profit target will be based on the 1.272 extension of the larger bearish impulse leg, as well as the most recent level of support.
Trade closed: target reached
