USD/CHF..Bearish head & shoulder pattern..Im spotting a bearish Head and Shoulders pattern on USDCHF, and it sounds like a neckline break has occurred, which is your trigger for short entry.
Let's break down the trade setup you're considering:
---
🟦 Trade Plan Summary – USDCHF Short
Pattern: Bearish Head and Shoulders
Neckline: Broken (confirmed breakout)
Entry: 0.81700 (current position)
TP1: 0.80440
TP2: 0.79370
SL (Suggested): Above right shoulder – e.g., 0.8200–0.8220 depending on volatility.
---
📊 Technical Breakdown
🟥 Head & Shoulders Breakdown:
Left Shoulder: ~0.8180–0.8190
Head: ~0.8260–0.8275
Right Shoulder: ~0.8180 again
Neckline: Likely drawn from around 0.8140–0.8150 support zone
With the break below neckline and a possible retest, you're in a solid technical spot.
---
📉 Target Zones:
1. TP1 – 0.80440
Former support from April–May price action
Near-term objective; good partial close area
2. TP2 – 0.79370
Much deeper support zone (early 2023 lows)
Completion of full H&S measured move
---
✅ Trade Management Advice
Measured Move Method:
Height from head to neckline is ~120 pips → Subtracting from neckline ~0.8150 gives a rough projected target: 0.8030 → supports your TP1.
Trailing SL:
Consider moving stop to breakeven after price clears 0.8080–0.8050.
Fundamentals:
CHF strength can often come with global risk-off sentiment.
USD weakness may continue if Fed dovishness grows.
---
Would you like a visual chart breakdown of this USDCHF pattern? If you upload a screenshot or confirm the chart time frame (e.g., H4, daily), I can generate a more specific analysis.
