FX Forecast – USD/CHF H4 Short
Our expectations: After the breakthrough in the main upward trend, the swift appreciation of the Swiss against the US dollar seems to be preserved. The price is in a resistance zone formed by an upper diagonal, a short horizon, 50SMA, and the already break diagonal of the upward trend. In addition, the price goes below 23.6% Fibonacci correction, while DeMarker points down from the over-purchase zone. Price Action – We do not have a precise formation at the moment to indicate that it is going down, but if we judge the price behavior when it reaches the resistance zone, we can conclude that investors are willing to sell with a large volume. This gives us very good levels to complete the short position.
Alternative Scenario: If the price returns above the resistance zone, the negative scenario will be spoiled, and we are more likely to see growth in the pair’s price.
Trader Petar Milanov