USDCHF Break-out and pull-back buy entries.

The USDCHF pair found Support yesterday exactly on the 1D MA200 (orange trend-line), which was the level that provided the last big rally (August 11 - September 06) within the Channel Down pattern that it has been trading in since the May 16 High.

The rise however has so far stopped just below the 1D MA50 (blue trend-line), so there is no reason to rush into trades. It is best to take a break-out/ pull-back buy approach and buy either if the candle closes above the 1D MA50 or wait for a break below the 1D MA200, probably closer to the 1D MA300 (yellow trend-line). That would still not be a Lower Low for the Channel but we have to consider not just the Support Zone around 0.93700 but also the Higher Lows zone (dashed) that is holding since the January 06 2021 Low.

In both cases, our target would be the top (Lower Highs trend-line) of the Channel Down. In order to buy above this level, the pair needs to break the 0.98880 - 0.98700 Resistance Zone, which formed a Double Top on the previous High. On the other hand, in order to sell, we need to see a candle break below the Support Zone, in which case our target will be the bottom (Lower Lows trend-line) of the Channel Down.




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