USDCHF | Perspective for the new week

FX:USDCHF   U.S. Dollar / Swiss Franc
The probability of the Greenback to do a substantial drop in the coming week(s) seems to be high following the appearance of a reversal pattern in the structure of a Head and Shoulder on the Daily chart .

Tendency: Downtrend ( Bearish )
Structure: Supply & Demand | Reversal pattern (Head & Shoulder)
Observation: i. As far back as 2010, It is interesting to observe how the Fr0.92400 zone has been a major determinant of the direction of price action as soon as it is broken or tested (See your weekly chart for reference purposes).
ii. Since the price broke above the Key level @ Fr0.92400, it has been difficult for buyers to continue with the same momentum as the Fr0.93700 level was met with sharp rejections that led to lower highs.
iii. Head & Shoulder: a baseline with three peaks, where the outside two are close in height and the middle is highest.
iv. The appearance of a Head & Shoulder at this juncture in the market describes a specific chart formation that predicts that a bullish-to-bearish trend reversal is imminent.
v. In this regard, I shall be looking forward to a Breakdown/Retest of Neckline which is also a significant Key level in the coming week for confirmations.
vi. This being said, the early hours/days of the new week might see a rise into the New Supply level indicated on the chart before the decline begins. However, it is most comfortable to have a position below the Neckline to join the potential decline... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 150 pips.
Risk/Reward: 1:3
Potential Duration: 4 to 10days

NB: This speculation might be considered to make individual decisions on the lower timeframe.

Watch this space for updates as price action is been monitored.

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