Hi Traders! We have USDCHF potential bearish opportunity from critical zone. A detailed analysis of this sell setup is as follows:
USDCHF W1 Chart:
On the weekly chart we had a good uptrend line that has formed and the price has broken below this dynamic support. Currently it looks like the price is retesting this breakout, we may now look for evidences of bearish pressure on lower timeframes in order to join the bears.
USDCHF D1 Chart:
On the daily chart we have a hidden bearish divergence that has formed which we may consider as an evidence of bearish pressure, we may now look for more evidences of bearish pressure in order to join the bears.
USDCHF H4 Chart:
On the H4 chart we have a critical zone that has formed based on the fibo level of the cycle and the weekly uptrend line. Currently the price which is moving higher has reached this critical zone. In addition to this we also have a bearish divergence that has formed which we may consider as an evidence of bearish pressure. We may now look for more evidences of bearish pressure in order to join the bears.
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.
Not sure how to spot reversals (bounces)? Not sure how to spot breakouts?
Also you can get one of my strategies free of charge. You will find all the details here
Chief Trader at Traders Academy Club