USDCHF | Perspective for the new week
It is over 200pips in our direction since my last publication on this pair (see link below for reference purposes) as price respects and completes my Descending channel expectations; The USD/CHF is rose sharply on Friday and climbed to Fr0.89000, thereby hitting it's the highest level since Wednesday. The question now is "Are we at a new Demand zone anticipating a surge?" Well, Let's see as price response to this key zone @ Fr0.88800 in the coming week shall either support or disagree with this bias.
Tendency: Uptrend ( Bullish )
Structure: Reversal pattern | Breakout | Supply & Demand
Observation: i. The Bearish run that began in November 2020 appears to have found the bottom to make a new Demand zone.
ii. The spring of a Bullish engulfing candle on Friday do has a piece of underlying information that needs further confirmation to make a decision on this pair.
iii. In this regard, Patience is key as I shall be looking out for a correction into the Demand zone followed by engulfing candles that will support a rally.
iv. It is also appropriate that we do not ignore the strong breakout of the bearish trendline as the price appears not to respect it anymore.
v. A significant breakdown of Fr0.88600 might consider this setup invalid as we continue to look for candles that support a surge from Demand zone.
Trading plan: BUY confirmation with a minimum potential profit of 140 pips.
Risk/Reward: 1:5
Potential Duration: 2 to 5 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Tendency: Uptrend ( Bullish )
Structure: Reversal pattern | Breakout | Supply & Demand
Observation: i. The Bearish run that began in November 2020 appears to have found the bottom to make a new Demand zone.
ii. The spring of a Bullish engulfing candle on Friday do has a piece of underlying information that needs further confirmation to make a decision on this pair.
iii. In this regard, Patience is key as I shall be looking out for a correction into the Demand zone followed by engulfing candles that will support a rally.
iv. It is also appropriate that we do not ignore the strong breakout of the bearish trendline as the price appears not to respect it anymore.
v. A significant breakdown of Fr0.88600 might consider this setup invalid as we continue to look for candles that support a surge from Demand zone.
Trading plan: BUY confirmation with a minimum potential profit of 140 pips.
Risk/Reward: 1:5
Potential Duration: 2 to 5 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
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