USDCHF on the move, potential reversal down in the making
On the 4H charts, we can see that the $USDCHF is starting to look as if it wants to reverse. Main things I'm looking at right now are the rejection of the larger timeframe downwards trendline, followed by a break of the moving average and (more important) a further push down. A pin and drive reversal entry trigger is in the making with the last two bars.
This will start to look familiar if you also checked at my previous charts, but I'm looking for very specific market conditions and these seem to happen at the moment: Clean trend, RSI divergence on the last trend swing, rejection of the trend line resistance, small double top formation and then a drive down.
There is a support level relatively close by, at 1.00300, which makes me a bit cautious to get into this setup too soon. I've marked this with the blue horizontal line.
Instead, what I would prefer is another run at the trend line resistance, followed by a push down which would mark the start of a new trend. For now, I'm in waiting mode.
Find more analysis on smartforexlearning.com and give us a follow:
- on Twitter: twitter.com/smartfxlearning
- on Facebook: www.facebook.com/smartforexlearning
- on Google+: plus.google.com/+Smartforexlearning
This will start to look familiar if you also checked at my previous charts, but I'm looking for very specific market conditions and these seem to happen at the moment: Clean trend, RSI divergence on the last trend swing, rejection of the trend line resistance, small double top formation and then a drive down.
There is a support level relatively close by, at 1.00300, which makes me a bit cautious to get into this setup too soon. I've marked this with the blue horizontal line.
Instead, what I would prefer is another run at the trend line resistance, followed by a push down which would mark the start of a new trend. For now, I'm in waiting mode.
Find more analysis on smartforexlearning.com and give us a follow:
- on Twitter: twitter.com/smartfxlearning
- on Facebook: www.facebook.com/smartforexlearning
- on Google+: plus.google.com/+Smartforexlearning
Comment:
Well, it seems that after Trump's comments that the US dollar is getting too strong, we won't have to wait for a momentum break. Price moved sharply lower.