The formation of bearish candlesticks suggests a potential move
This analysis is focused on the USD/CHF currency pair, highlighting a potential bearish setup using price action and support/resistance zones.
Key Observations:
Resistance Zone: The price is currently reacting within a highlighted resistance zone (purple rectangle) near 0.91680, where selling pressure is evident after multiple rejections.
Bearish Bias: The formation of bearish candlesticks suggests a potential move lower from this resistance area.
Target Zone: A lower support zone around 0.91350 is identified as a possible target for this bearish move. This level aligns with prior consolidation, where buyers may attempt to regain control.
Trade Idea:
A short position could be initiated near the current resistance zone (0.91680) with an initial target around 0.91350.
A deeper move might occur if bearish momentum increases, potentially breaching the lower support zone.
Risk Management: Place a stop-loss above the resistance zone, ensuring proper risk-to-reward is maintained.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.