USDCHF short bias confirmed, look for entries on lower frame
USDCHF has confirmed short bias with a reversing candle pattern at the very important level with resistance of the trendline, fib 50% and horizontal level. It is time for us trend followers to start looking for short entries on lower time frame. Personally I think that price may break previous low at 0.9663 and go further downside. However, as there are still some supports below, try to be cautious and only look for short entries with good patterns on lower frame. We will try to conduct this short trend day by day. I will update more comments with this post.
Comment:
4 hour chart: we could see a short term support just below the current price. Today I'd like to wait for a weak candle on 4 hour chart completed near or below short term support, then I could look for short entry. Any try on short above this support may bring high risk on reversing.
Comment:
It is not appropriate to look for long above the red resistance zone. However, we still have to wait for the short term raising trendline to be broken before start looking for short entries. More consolidation may happen here. Be patient.
Comment:
What we have to wait in the following day is a short confirmation - a weak candle close below this support level, then it is time to look for short entry. Keep an eye on the price action on lower frame.
Trade active:
Have entered this short when price broke the blue line.
Trade closed manually:
trade is closed at today's adr 0.9902
Comment:
Today's non farm payrolls is coming soon, I will only focus on short USD as the main trend is down. We may have this trade as soon as data is launched if the number is under forecast, or later if the number is similar to forecast. However, if the number is much higher than 195K, like 250K, just give up this plan.
Comment:
Non farm payrolls is much higher than forecast, just give up this plan. I won't long USD right now as the main trend for USD is down.