Hi Traders! USDCHF technical analysis and short term forecast post is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. 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!
USDCHF H4(4 Hours) Chart Analysis – Strong Resistance Zone, Bearish Hidden Divergence, ADX Indicator
On the H4 chart, we have a strong resistance zone that has formed and the price which is moving higher has reached this zone, respected it and is bouncing lower from this zone. In addition to this, the price has created a bearish hidden divergence between the first high that has formed at 0.98692 and the second high that has formed at 0.96419 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
USDCHF H1(1 Hour) Chart Analysis – Bearish Divergence, ADX Indicator, Two Strong Resistance Zones
On the H1 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 0.96256 and the second high that has formed at 0.96419 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. Also, we had two strong support zones that has formed and the price which was moving lower has broken below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones (marked in red) shown in the image below hold my short term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
USDCHF H4(4 Hours) Chart Analysis
- Strong Resistance Zone, Bearish Hidden Divergence, ADX Indicator
USDCHF H1(1 Hour) Chart Analysis
- Bearish Divergence, ADX Indicator, Two Strong Resistance Zones
Trading Tips
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.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to
And improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Traders Academy Club Team
