On the daily chart, USD/CHF has been in a range for some time. This range can be recognized as a bearish continuation, as it has formed after a bearish impulse.
When price tested the resisting trendline for the third time, we saw strong rejections indicating selling pressure.
Price has now been moving in a corrective manner downwards, this signifies a reversal but in this case it most likely be a retracement.
At the 61.8% retracement, the is a strong area of resistance.
If price retraces there, it would form a perfect head and shoulders, which is what i expect from this pair.
The right shoulder is normally lower that the left one so price may reject the 50% retracement then push downwards.
Remember that the market may just take off where it is, in such a case, look for entries at the breakout of the trendline.
Targets are set in green.
USDCHF
When price tested the resisting trendline for the third time, we saw strong rejections indicating selling pressure.
Price has now been moving in a corrective manner downwards, this signifies a reversal but in this case it most likely be a retracement.
At the 61.8% retracement, the is a strong area of resistance.
If price retraces there, it would form a perfect head and shoulders, which is what i expect from this pair.
The right shoulder is normally lower that the left one so price may reject the 50% retracement then push downwards.
Remember that the market may just take off where it is, in such a case, look for entries at the breakout of the trendline.
Targets are set in green.
USDCHF