Where are we headed next on USD/CHF?
On USD/CHF, the scenario is looking rather bearish. Initially, we observed a fresh wave starting from the 0.915 – 0.92 zone, which drove the price all the way down. After reaching the crucial key level of 0.885 – 0.887, a correctional move phased in and and rode the price in the upward destination. At that region, two major confluences line up well – the previously penetrated zone mapped as a red box and the 50%-61.8% Fibonacci retracement level identified by connecting the start and end of the recent impulse. There, we observed a crucial rejection, which was powerful enough to make the price reverse once again and head in the downside destination. Consequently, the same wave makes us confident in the fact, that the price could continue declining and, in the upcoming long-run, reach the approximation of 0.873 level that we have mapped on the graph.
We are attaching the detailed chart outlook below:
What does the textbook say about this?
The pattern might look very similar to you. It is a traditional bearish trend that consist of a few ‘impulse+correction’ sets. The contrary outlook to this is a bullish trend that comprises of impulses and corrections too. The opposite view of the both would be a ranging pattern, where the price is stuck between two barriers and is unable to commence a trend.
To illustrate, this is how it would look on textbook:
What does the Investroy Academy say about this?
We have an article that teaches what a trend is, and how we could identify and benefit from its utility. The paper is labelled as ‘Trend’ and it could be found within the Library section of the Academy.
On top, we have already utilised the technical orchestration examined in this article for entering trade positions. As such, we have entered a SELL trade on USD/CHF, and are awaiting for the price to carry on declining.
Here is how the article and the trade entry could be found within the platform:
