darcsherry

USDCHF | Perspective for the new week

Short
FX:USDCHF   U.S. Dollar / Swiss Franc
We scooped a total of 150pips in our direction since my last publication on this pair (see link below for reference purposes) before the rally began and since the beginning of the new month, it has been a choppy session for this pair. Now, the appearance of a Bearish rectangle at this juncture technically insinuates that the USD/CHF might be set to plunge a little lower in the coming week(s).
NFP negative data coupled with deterioration in risk appetite in the last days of last week trading session has seen US equities and commodities come under pressure hereby benefitting pairs such as the Swiss.

Tendency: Downtrend ( Bearish )
Structure: Supply & Demand | Trend continuation ( Bearish Rectangle )
Observation: i. Since on the 25th of November 2021, the price continued to spiral downward to a bus stop around Fr0.91600 on the 30th of Nov 2021.
ii. And since hitting a bottom, we have witnessed price moving between a horizontal support and resistance levels ( supply and demand ) in the last 3 days which transposes into a Bearish rectangle set-up.
iii. Technically, the bearish rectangle is a continuation pattern that occurs when a price pauses during a strong downtrend and temporarily bounces between two parallel levels before the trend continues.
iv. In this regard, I shall be looking forward to confirmation in the guise of a breakdown/retest of the rectangle's support level to join the decline train.
NB: Under the Key level @Fr0.91800 should remain as a yardstick for bearish options in the coming week(s)... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 120 pips.
Risk/Reward: 1:4
Potential Duration: 1 to 4days

NB: This speculation might be considered to make individual decisions on the lower timeframe.

Watch this space for updates as price action is been monitored.


Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.

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