USDCHF – Looks To Be Forming Bearish Head and Shoulders Pattern

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Monthly: For the last 83 months, the USDCHF pair has held within a bullish channel formation. Levels close to 1.0380 continue to cap buying.  A full AB=CD formation would push the pair to 1.1450. We have seen spikes in both directions for the last three months, highlighting indecision at current levels. The psychological 1.0000 (Big Figure) continues to be pivotal.

USDCHF-Monthly-Chart
USDCHF-Monthly-Chart

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Weekly: We have seen sideways price action for the last 11 weeks. The trend of higher highs (currently 1.0070) continues to cap buying.  A break lower and trend line support is not seen until 0.9462. This is in between the 61.8% and 78.6% Fibonacci level of 0.9524 and 0.9376.

USDCHF-Weekly-Chart
USDCHF-Weekly-Chart

Daily: Price action looks to be forming a bearish Head and Shoulders pattern. A break of support at 0.9868 and the measured move target is 0.9670. We look to sell into rallies.

USDCHF-Daily-Chart
USDCHF-Daily-Chart
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