USDCHF – First ‘leg’ near completion. Selling rallies

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Monthly: For the last 87 months USDCHF has held within a bullish channel formation. Level close to 1.0330 continue to cap buying.  A full AB=CD formation would the the pair to 1.1450. The psychological 1.0000 (Big Figure) continues to be pivotal and attract both sellers and buyers. Trend line support is located at 0.9446

Weekly:  Levels above the trend of higher highs attracted sellers (1.0084) with last week’s price action posting an Inverted hammer, often a formation that highlights a top is in place. We can also note bearish divergence (the chart makes a higher high while the RSI makes a lower high). Follow through selling can be seen this week.

Daily: Broke the trend of higher lows. Reverse trend line resistance is located at 1.0063. Bespoke resistance is located at 1.0060

 

Intraday (4-hours): With a 261.8% extension level located at 0.9886 (from 1.0129-1.0036), further losses could be limited. A projected 78.6% Fibonacci retracement level is located at 1.0076. The previous swing high is located at 1.0094. Bespoke resistance is located at 1.0060. This is our prime area to get short on a correct ‘bounce’

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