Will USDCHF test the key swing lows?
In this video, we break down the market using top-down analysis and point out the key zones to watch for as the price moves lower.
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’re going to take a look at USD/CHF. It was our chart from the Blueberry Jam last night. So, I wanted to go over these currency pairs.
If we go to the daily timeframe, we can see that we have this nice downtrend from USD/CHF, and we’ve even broken out of a key level here. You can see that the market is making those lower lows lower highs.
The market rallied, retested this structure low, here, and moved sideways. But, what we saw in the four-hour timeframe was the trend continuing because the price broke lower and formed lower lows again. In this consolidation pullback; the price is moving sideways, creating a slight mood to the upside, a bit of a consolidation pattern. We then break out of these lows here with this candlestick. We’re now looking for the price to pullback into this previous level of resistance.
Now, it does look like the price has retested it slightly, here, which was our entry. But, we’ve been kept out of this via the spread. It looks to me like the price did slightly retest this area because there are zones, not just horizontal levels. So, this zone, here, has continued to push to the downside already.
What we can do is either leave this order to see if the price does pull back into this area again and continue to the downside or what we can also do is to mark another zone of interest. If we have taken these lows here, and then dive down into a lower timeframe such as the 15-minute timeframe, we can look for price to come back up, and retest this level.
If the market does rally back up to here, we can look for a reaction from this zone where the price found support on multiple occasions recently. Double-top pattern and any head and shoulders pattern here would be good to look at for those continuation shorts with the slam target being those daily swing lows here.
So, if you look at four-hour, you can see a little bit more detail there. So, looking for the market on USD/CHF to push to the downside. We’ve now broken into that new four-hour trend; look to take advantage of that move down.
Keep your eye on this. Looking for targets around these lows, and I hope you enjoyed this video. If you did, please like and subscribe to the YouTube channel for more, and I’ll speak to you tomorrow. Cheers!
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