The dollar index (DXY) has got some bullish momentum, hence it's going to affect also the major currency pairs. For example, if you look at USDCHF 1H TF, you can see that we can go for a long because of the following observations in the price action.
1) The M pattern is completed, the highly probable price action reversal region is denoted in "Red shaded area".
2) This also coincides with the daily support @ 0.9381 (denoted by Yellow dashed line).
3) RSI divergence is also observed.
4) Bullish engulfing candle after the bearish momentum got exhausted.
After the completion of M pattern, the price action makes a reversal and comes to the neckline of M pattern.
The TP target levels are:
- 0.9414 (38.2 fib level)
- 0.9424 (50.0 fib level)
- 0.9434 (61.8 fib level)
Disclaimer: This is not a signal, this analysis is for educational purpose only. Please do your own technical analysis and get into the trade with your own risk when you find a valid entry.
1) The M pattern is completed, the highly probable price action reversal region is denoted in "Red shaded area".
2) This also coincides with the daily support @ 0.9381 (denoted by Yellow dashed line).
3) RSI divergence is also observed.
4) Bullish engulfing candle after the bearish momentum got exhausted.
After the completion of M pattern, the price action makes a reversal and comes to the neckline of M pattern.
The TP target levels are:
- 0.9414 (38.2 fib level)
- 0.9424 (50.0 fib level)
- 0.9434 (61.8 fib level)
Disclaimer: This is not a signal, this analysis is for educational purpose only. Please do your own technical analysis and get into the trade with your own risk when you find a valid entry.