- USD/CHF looks to be in a well established downtrend now - After a bear flag formation last week the pair successfully broke down to create a lower low - Within this bear flag the previous swing low support prior to its formation, formed the new resistance level within the pattern - This may be repeating itself within the second bear flag being formed at the moment - We will have to see if price successfully rejects this level as resistance and breaks down through the bear flag pattern
*** For this second bear flag to be valid we would need to see price break through the lower ascending trend-line support *** If price were to break higher through both the previous support turned resistance, as well as the ascending trend-line resistance of the pattern this would invalidate it
@Alecson95, If upper trend line resistance breaks, pattern invalid.
If lower trendline support breaks, pattern valid + completed. As mentioned in chart description
Alecson95
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@JamesEvison, which resistance? Previous resistance? As of now it has broken the ressistance of 0.99079. Please advise
FTE1995
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@Alecson95, - Price made a false bearish break of the second bear flag formation, as we broke below the support trend-line, but then advanced back through both the broken support trend-line + resistance trend-line of 2nd bear flag
- Price is now at the resistance level encountered within the 1st flag pattern shown on chart
- In short, the second bear flag is invalid now but we may see a drop from the current level (0.9930), as this acted as resistance within the 1st flag
Hope this helps.