USDCHF – Head and Shoulders offer bearish bias

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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) resulting in an Inverted hammer being posted, 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.

Intraday (4-hours): First 5 wave completion at 0.9909. With the rejection of rallies close to trend line resistance at 0.9994, we look to be forming a bearish Head and Shoulders pattern. A break of trend line support at 0.9872 would confirm this. Reverse trend line resistance from the channel breakout is located at 0.9951. Bespoke resistance a 0.9961. This is our area to get short.

 Intraday (8-hours): The formation has a measured move target of 0.9660


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