USD/CHF Scalp strategies - Approaching HTF 6.6 R:R shortAs I mentioned in my setups last week, we broke out of a HTF triangle to the downside. We are currently in an uptrend pullback but are at 2 key retrace levels on the fib from recent swing high and low that we can target as scalp trades prior to taking our longer term short trade. Since we just broke out of a strong downtrend trend line to the upside, we expect an upside push for further liquidity.
Confluence for upside scalps:
1. Breakout of strong downward channel - Short term upside momentum
2. Approaching 61.8% retrace level which lines up perfectly with the bottom of the triangle that we broke out of.
3. 70.7% level is sitting right at the bottom of a strong unmitigated supply zone which was created by the former swing high. Sellers could use this zone for larger push to downside (and trend continuation)
If price does not fail at this 50% resistance level with strong volume, I expect first a retest of the 61.8% retrace level at .8930 (80 pip profit) and if break that level we will be expecting price to mitigate the 70.7% level and supply zone above at the .898 level (125 pip profit).
This gives us multiple scalp opportunities to the upside prior to taking our large short trade (6.6 R:R) once price reaches these supply zone levels.
