Hi Traders! USDCHF technical analysis and short term forecast 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! Let’s start our analysis from the highest timeframe which will be the H4 chart here.
USDCHF H4(4 Hours) Chart Analysis – Psychological Level, Bearish Divergence, RSI Indicator
On the H4 chart, the price which was moving higher reached the psychological level 1.00, respected it and bounced lower from this zone. Also, we have a bearish divergence that has formed between the first high that has formed at 0.97590 and the second high that has formed at 1.00641 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, we also have this bearish divergence on the RSI indicator as well, which we may consider as yet another evidence of bearish pressure. Also, currently there are no signs opposing this short term bearish view. So everything looks good here for the bears and basically I expect short term bearish moves to happen here. We may now move down to lower timeframe and see if we can find evidences supporting this short term bearish view.
USDCHF H1(1 Hour) Chart Analysis – Bearish Convergence, Bearish Hidden Divergence, Stochastic Oscillator
On the H1 chart, the price which was moving higher has created a bearish divergence between the first high that has formed at 1.00490 and the second high that has formed at 1.00641 based on the MACD indicator. The price then moved lower and broke below the last low at 0.99921 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. Generally, after a bearish convergence we may look for corrections and then further continuation lower. Currently, it looks like a correction is happening and in addition to this, the price has created a bearish hidden divergence that has formed between the first high that has formed at 1.00641 and the second high that has formed at 0.99844 based on the MACD indicator which we may consider as another evidence of bearish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence of bearish pressure. Until the strong resistance zone (marked in red) holds 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
- Psychological Level, Bearish Divergence, RSI Indicator
USDCHF H1(1 Hour) Chart Analysis
- Bearish Convergence, Bearish Hidden Divergence, Stochastic Oscillator
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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
