USD/CHF: a textbook H&S pattern has been formed. Time to drop?🧙
Monitoring the H8 timeframe of USD/CHF, we may notice that a number of confluences has lined up nicely for a short bias.
First of all, it can be observed that the price is trading within the borders of the descending channel plotted on the graph. After forming for a whole week, the price has been able to print a nice Head&Shoulders pattern around the area of the upper barrier of the channel. What is more, the neckline of the formed H&S pattern neatly aligns with the 0.618 Fibonacci retracement level and it has nicely been rejected.
After some lower-timeframe pullbacks, we are expecting for the price to continue its downside movements and drop all the way down and reach the level highlighted on the graph.
First of all, it can be observed that the price is trading within the borders of the descending channel plotted on the graph. After forming for a whole week, the price has been able to print a nice Head&Shoulders pattern around the area of the upper barrier of the channel. What is more, the neckline of the formed H&S pattern neatly aligns with the 0.618 Fibonacci retracement level and it has nicely been rejected.
After some lower-timeframe pullbacks, we are expecting for the price to continue its downside movements and drop all the way down and reach the level highlighted on the graph.