So CHF is in a range for the past 3 years, but current fear in the world has boosted its valuation. A historical look show that every peak above the channel top with RSI above 70 on the daily chart has been in anticipation of a turn down. We're gonna bet on history repeating itself.
- Peak over strong channel top
- RSI and Stoch overbought (which has been a good ...
It seems we're in the wave 5 of a larger C wave.
wave 3 retraced to 236 so wave 4 has retraced to between 0.618 and 0.78. I think its a good idea to go short now.
Wave 3 went to 0.786 of wave 1 extension, so wave 5 should be even smaller
The CHF has successfuly retested its wedge but has been unable to accelerate higher. Given the current small time pattern, I'd expect a small move up followed by a second retest of the support zone.
Should the pass of least resistance still be the upside, the uptrend should then resume.
The flash crash points a very important series of higher highs and lower highs for British Pound. The GBP is now nearing support where a rally continuation can be seen at least into the .236 or .382 zone. While shorting GBP has been rewarding, it is likely to be bound for a rally.
March will be a sticking point for GBP but for now we do away with politics and ...