8:15 PM (EST) Update
USD/CHF 4 Hour: Reached both our bearish targets on the 4 Hour chart, completing the head and shoulders reversal pattern
USD/CHF Daily: Broke below Pivot Level, Supported by 50% Fibonacci/ Descending Channel.
Forex Trading idea: Short positions below pivot level of 0.95 targeting 0.92 and 0.907 in extension
Technical reasons why: The USD/CHF pair finally broke the consolidation. While remaining inside the Ichimoku cloud on the daily chart, it confirmed a break below the 61% Fibonacci level at 0.95. This may have opened doors for further drops to 50% Fibonacci. Another way of looking at it is the falling channel the pair is currently dancing within, and setting its lower level as support. The bearish sentiment continues as long as the pair remains within this channel.
Alternative Scenario: Above 0.95 with no bearish confirmation, look for up-moves towards 0.97
Where to set your stops and limits on the Daily Chart:
|Support Levels||Turning Point||Resistance Levels|