Hi Traders! CHFJPY short term forecast and technical analysis post is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available!. Now, let’s start our analysis from the highest timeframe which will be the daily chart here.
On the daily chart, the price which is moving higher has currently reached a key resistance zone that has formed based on the 61.8%(136.313) Fibonacci expansion level of the first wave and the 161.8%(134.965) Fibonacci expansion level of the second wave. Also, we have a bearish divergence that has formed between the first high that has formed at 136.179 and the second high that has formed at 137.793 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, we have this bearish divergence on the RSI indicator as well. Also, based on the Parabolic Sar we could see that the dots are above the price, we may consider these as evidences of bearish pressure. So based on all this, my short term view is bearish here and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
On the H4 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we were looking for is happening. In addition to this, we had a bearish hidden divergence that has formed between the first high that has formed at 136.612 and the second high that has formed at 135.912 based on the MACD indicator, we may consider this as another evidence of bearish pressure. Also, we had two strong support zones and the price which was moving lower has broken below these zones and holding below them. We may consider this as yet another evidence of bearish pressure. Currently these two strong support zones are acting as two strong resistance zones for us. Until both these resistance zones hold my short term view remains bearish here and I expect the price to move lower further.
CHFJPY D1(Daily) Chart Analysis
CHFJPY H4(4 Hours) Chart Analysis
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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Arvinth Akash
Traders Academy Club Team.
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