As we can see here on the USD/CHF
chart that this pair has been trending in a significant steep down trend. This pair has been creating constant lower and lower lows. The market was in a downward tunnel and then broke down to new lower low areas, once this break happened it came to create a new support trend line
, to then move back into the tunnel for the last time, before breaking down for the second time before breaking down and testing the newly made support trend line
, market then created new confirmation of structure and moved back to the upside to test the original broken tunnels support as a new resistance level
. This level it has reached is also a strong reversal area, and price has just tested that area 2 times to create a miniature double top
. Strong signs of a change in momentum are being shown to move back to the downside areas. Due to this type of pattern with more confirmation of structure we are looking to take a strong sell for market to move in our favour to the downside.