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 – Key Resistance Zone, Bearish Convergence, ADX Indicator
On the H4 chart, the price which was moving higher has reached a key resistance zone formed by the 100% (0.98996) Fibonacci expansion level of the first wave, respected it and has bounced lower from this zone. Also, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 0.98586 and the second high that has formed at 0.98692 based on the MACD indicator. The price then moved lower and broke below the last low at 0.97651 creating lower lows, 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. In addition to this, 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 Trend Pattern, ADX Indicator
Looking at the H1 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. 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. Until the key resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further after pullbacks.
Technical Analysis & Forecast Summary
USDCHF H4(4 Hours) Chart Analysis
- Key Resistance Zone, Bearish Convergence, ADX Indicator
USDCHF H1(1 Hour) Chart Analysis
- Bearish Trend Pattern, ADX Indicator
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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Arvinth Akash
Traders Academy Club Team
