USD/CHF: Bear is Pumped Up to Conquer the Territory

• USD/CHF produced an evening star at a significant resistance.
• The pair trades below the simple moving average 30.
• The H1 chart looks bearish trying to break today’s low.
• Intraday minor charts have been bearish.

USD/CHF- Technical Analysis-H4 Chart

The chart shows that the price has been heading towards the downside with decent momentum upon finding its resistance around 0.92400. On its way, it made a bearish breakout at the simple moving average 30. It then made a bullish correction and produced a bearish engulfing candle right at the resistance of the SMA30’s resistance. Additionally, it made another breakout at 0.91100 and made another bullish correction. The pair produced a Doji candle followed by a bearish engulfing one. The pattern is called evening star, a very strong bearish reversal pattern. As expected, the price has been heading towards the South in a hurry. The sellers may go short and drive the price towards 0.89350.

The buyers on the other hand may not make any trading decision based on the H4 chart unless it produces a very strong bullish move. As things stand, it is less likely to happen.

Price Action Analysis-H1 Chart     

The chart shows that the price has been heading towards the downside with very good bearish momentum. The price made a pivotal bearish breakout at 0.90800. The sellers may wait for the price to consolidate around the level and produce a bearish reversal candle to go short in the pair. The price may find its next support around 0.90200.

Both charts look good for the sellers. Thus, the pair may remain bearish for some days. It means we may see that the pair changes its trend and head towards the South on major charts as well.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn