Hi Traders! USDCHF daily range provides sell opportunity for us. A detailed analysis of this bearish setup is as follows:
USDCHF D1 Chart:
On the daily chart the price is moving inside a range, this range is formed by the highs and lows reaching similar resistance and support zones. The price is respecting this range so far and has currently reached the top of it, if we didn’t get a valid breakout here we may then expect the price to respect this top and move lower again. We may now start looking for bearish setups with bearish evidences on lower timeframes in order to join the bears.
USDCHF H4 Chart:
On the H4 chart the price has created multiple divergences with false breaks which we may consider as evidences of bearish pressure. In addition to this the price has also created a nice engulfing candle pattern which we may consider as another evidence of bearish pressure. Until the top of the daily range holds we may start looking for 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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