Hi Traders! USDCHF daily channel provides bearish opportunity for us. A detailed analysis of this sell setup is as follows:
USDCHF D1 Chart:
On the daily chart the price is moving inside a bearish channel. This channel is formed by the highs and lows reaching parallel resistance and support zones. The price is respecting these two zones so far. Currently the price has reached the top of this channel and if we didn’t get a valid breakout here, we may then expect the price to respect this top again and move lower. We may now look for evidences of bearish pressure on lower timeframes in order to join the bears.
USDCHF H4 Chart:
On the H4 chart we have a critical zone that has formed based on the top of the daily channel and the fibo levels of the cycles we have. Currently the price has reached this critical zone, in addition to this the price has created a double top with bearish divergence which we may consider as evidences of bearish pressure. We may now look for bearish setups with bearish evidences in order to join the bears.
USDCHF H1 Chart:
On the H1 chart we have a bearish divergence that has formed then the price moved lower and broke below the uptrend line, we may consider these as evidences of bearish pressure. We may now look for pullbacks and sells with more bearish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this 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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