FOREX Chart Of The Day: USDCHF- Now At Support
We have talked about #USDCHF a lot recently, first for a counter-trend move and now for a trend trading move.
The inverse head and shoulders pattern neckline support has now been tested.
This could offer a trend trading opportunity.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
In this video, we’ll take a look at USD/CHF as the price has now fallen back to that supporting zone we were speaking about.
Earlier, we talked about the market’s potential to fall from this area here, down to our major swing point. Typically, the market would potentially get a move here.
We need to be careful because a lot of people will probably be eyeing this area for a long opportunity. It may not go the way that we expect it to at first, but I do like the opportunity that’s starting to form here, and I will like it even more if we get a nice daily close in this position.
If we could either stay as we are or find a bit of bullishness in here, that would be nice. But, ultimately, what I would like to see is a four-hour change in trend. We’re starting to see a few buyers coming back here, which is nice.
But as we’ve been speaking about quite often in our videos recently, I want to reaffirm this statement. When we get the impulse phases, we typically see the four-hour change in trend. When the trend of the four-hour changes, that’s when we are in that daily impulse move. When we get a change in trend here, you can see that the market pulls back in a retracement move.
So again, retracement, what is the market doing? Well, it goes a bit sideways but still failing to make any higher highs and instead, we get lower lows.
Typically, during those retracement phases are when institutions are doing their businesses. What I’m expecting here is if the market does want to bounce from this area. I want to see some change in cycle on our four-hour and this is where our market patterns are so important. I don’t believe in any specific type of price action in terms of pin candles or bearish engulfing candles, or bullish – they all come into work, but they only seem to work at huge support zones. It’s more important to identify those key levels and then watch how the price reacts because my favorite pattern is the double-top and the double-bottom pattern. After all, it shows that the price is failing to break any lower, and it gives me confirmation that the price could be moving to the upside with a double-top. The same goes if the market can reject the previous highs and close below, it shows me that the price is failing in this area and that we’re more likely to see some downside at these key levels. So, I’m watching for a double-bottom pattern here.
Keep an eye on that. I do like the fact that we’re in this huge support zone. We could sink a little bit lower before we get up to trading this into a long position. But essentially, I’ll be watching this area to see if the US Dollar buyers step back in. We’ve got this inverse head and shoulders pattern. We looked for a short into that level, that was great. Now, let’s look for a long from the key supporting area.
Thanks for watching this video update. If you did like it, please give it a thumbs up. What do you think about USD/CHF? Do you think it’s going to trade higher from here? Let me know in the comments section below, and I’ll speak to you very soon.
We hope our Forex Chart Of The Day analysis helps you in your trades. Practice trading the USD/CHF with free $50,000 funding when you sign up for a free demo account at Blueberry Markets.