i'll briefly explain why i'm shorting this pair. The black line that you see represents a 4hr structure level; the yellow box represents the reversal zone based off of the daily chart. As the price reached this two level it started to slowing down. In addition, it gave us some signals that maybe wants to go lower: the first indecision sign is provided by...
USDCHF has moved steadily higher since the end of January but now looks stretched and a move back to lower ground is favoured perhaps back to parity as we await Wednesday. RSI on the DTF is sinking and the BEARS look to be in control.
Support at 1.0056 or 1.0035 area might hold.
.9938 should hold any deeper drops.
SELL down to 1.0056 or 1.0035. If...
today let's take a look at this oncoming opportunity on USDCHF. The reason for entry would be an advanced pattern formation (Bat) but i'm always more confident when i see also structure lining up with those levels i'm looking to buy or sell something.
Here you can see a black line that represents a key structure level that acted as support/resistance...
0.985 - important strong support level
Bearish scenario: daily close below 0.985 will open the way to 0.97 (200 EMA on Weekly time frame, long term uptrend line).
Bullish: reversal around 0.985-0.99 and close above 0.995 - profit targets at 1.004, 1.0155 and 1.0345
Situation similar and correlated to DXY.