USDCHF | Perspective for the new week | Follow-upPrice has moved over 100pips in our direction since my last publication on this pair (see link below for reference purposes) and I am looking forward to a further dip to complete correction of the Breakout that happened on the 24th Feb 2021 to join the rally in the coming week(s).
Following the Swiss National Bank (SNB) Chairman Thomas Jordan perspective that it shall continue to adopt a negative interest rate approach appears to pose a negative effect on the Swiss franc as the risk of further decline remain imminent even though it remains highly valued.
Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand | Harmonic pattern (AB = CD)
Observation: i. Following the neckline Breakout, the price hit a peak of Fr0.94750 - a level that was immediately met with rejection as it rolled back down with a possible motive of making a Correction of the last Breakout (AB leg).
ii. In this regard, I shall be looking forward to transposition into an AB = CD pattern with parameters explained below;
a. Leg A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg is expected to test 61.8% - Fr0.905000 (with the possibility of retracing into 78.6% - Fr0.89000 in the future) Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to extend within 127.2 - 1.414% Fib. ext. of the A-to-B move @ FR0.975000 area.
iii. I must emphasize here that completion of retracement (BC leg) is what we are waiting for to join the rally and it is very possible that completion might be at the Demand zone which is around Fr0.890000/0.905000 before the rally begins.
iv. However, should price decide not to retrace that dip, then a close above Key level @ Fr0.915000 shall be a yardstick for buying opportunity in the coming week... trade consciously :)!
Trading plan: BUY confirmation with a minimum potential profit of 500 pips.
Risk/Reward : 1:8
Potential Duration: 20 to 30days
NB: his is a long term speculation and may 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.
