CHF/USD (Swiss Franc/US Dollar) – 30-Minute Chart Full Technical Breakdown
1. Market Context and Sentiment Analysis
Over the last several sessions, CHF/USD has been trending strongly downward. This reflected broader market fundamentals: strength in the Swiss Franc as a safe-haven asset and periodic USD weakness.
However, the recent price structure suggests momentum exhaustion. The sharp declines began to slow down, and buyers started stepping into the market around the 1.2086 support zone.
Key signs of shift in sentiment:
Slower price descent (loss of bearish momentum)
Formation of stronger bullish candles at lows
Key technical support holding across multiple sessions
This environment is perfect for reversal patterns to form — and indeed, a textbook Double Bottom appeared.
2. Technical Structure Analysis – Double Bottom Pattern
The chart clearly shows the formation of a Double Bottom, which is one of the strongest technical signals for a potential bullish reversal.
🟢 Double Bottom Components:
Bottom 1 formed after an aggressive sell-off. Sellers pushed the price to 1.2086 but faced strong rejection — indicated by long lower wicks.
Retracement occurred up to a temporary resistance area, but buyers lacked the strength to fully reverse the trend yet.
Bottom 2 retested the same 1.2086 support zone but failed to break lower, showing that selling pressure was weakening significantly.
Neckline Resistance was established around 1.2150.
Breakout: A clear breakout above the neckline, supported by high bullish volume and strong momentum candles, confirmed the pattern.
✅ Pattern Confirmation Checklist:
Confirmation Status
Double touch of support? ✔️
Failed breakdown attempt? ✔️
Breakout above neckline? ✔️
Strong bullish momentum after breakout? ✔️
3. Key Levels and Market Structure
📍 Important Price Levels:
Level Type Price
Support Zone 1.2086
Neckline Resistance ~1.2150
First Target (TP1) 1.2250
Emergency Stop Loss (SL) Below 1.2086
Support:
Well-defined, tested twice without significant breach.
Resistance:
Clean neckline breakout confirming the bullish reversal.
The 1.2250 level is a logical target because it's the next significant resistance based on previous price reactions.
4. Price Action Post Breakout
After breaking the neckline:
The price rallied aggressively.
A minor flag/consolidation structure is forming just after the breakout — a very typical behavior before continuation.
Buyers appear firmly in control, while sellers are retreating.
This consolidating move increases the probability of the next impulsive move continuing higher toward the 1.2250 TP.
5. Trade Setup Plan
🧩 Entry, TP, and SL Plan:
Component Details
Entry On breakout confirmation or retest of neckline
Take Profit (TP) 1.2250
Stop Loss (SL) Below 1.2086
Risk-Reward Ratio ~2:1 (Ideal setup)
📋 Trade Management:
Risk small: (1%-2% of account per trade)
Move SL to Break-even: once halfway to the target (~1.2200) to secure risk-free trade.
Partial Close: You can close 50% of position near 1.2220 and let the rest run to 1.2250 if you want to manage profits dynamically.
6. Market Psychology Behind the Setup
Double Bottom: Represents exhaustion of sellers and growing confidence among buyers.
Breakout: Indicates a significant shift from supply dominance to demand dominance.
Current Consolidation: Shows that buyers are regrouping, preparing for another wave of upward momentum.
The collective behavior (buying at support, defending after breakout) tells us the bulls are more aggressive now.
7. Possible Alternative Scenarios
Always be aware of risks:
If the price drops back below 1.2086, the bullish structure will be invalidated.
In that case, sellers might regain control and push the price lower toward 1.2000 or even beyond.
News events (like USD economic releases) could add sudden volatility, invalidating the pattern.
⚠️ Stay flexible — patterns offer probability, not certainty.
📊 Overall Strategic Summary:
✅ Pattern Formed: Double Bottom Reversal
✅ Trend Direction: Bullish Bias Confirmed
✅ Entry Signal: Breakout Retest (or continuation breakout)
✅ Target: 1.2250
✅ Risk Management: Tight stop loss under the structure
✅ Market Context: Sentiment shift visible, supported by technical breakout
🔥 Final Pro Tip:
"Double Bottoms work best when they coincide with a strong psychological support zone and are followed by aggressive bullish candles — exactly what we see here. High-quality setups deserve high-quality discipline."
1. Market Context and Sentiment Analysis
Over the last several sessions, CHF/USD has been trending strongly downward. This reflected broader market fundamentals: strength in the Swiss Franc as a safe-haven asset and periodic USD weakness.
However, the recent price structure suggests momentum exhaustion. The sharp declines began to slow down, and buyers started stepping into the market around the 1.2086 support zone.
Key signs of shift in sentiment:
Slower price descent (loss of bearish momentum)
Formation of stronger bullish candles at lows
Key technical support holding across multiple sessions
This environment is perfect for reversal patterns to form — and indeed, a textbook Double Bottom appeared.
2. Technical Structure Analysis – Double Bottom Pattern
The chart clearly shows the formation of a Double Bottom, which is one of the strongest technical signals for a potential bullish reversal.
🟢 Double Bottom Components:
Bottom 1 formed after an aggressive sell-off. Sellers pushed the price to 1.2086 but faced strong rejection — indicated by long lower wicks.
Retracement occurred up to a temporary resistance area, but buyers lacked the strength to fully reverse the trend yet.
Bottom 2 retested the same 1.2086 support zone but failed to break lower, showing that selling pressure was weakening significantly.
Neckline Resistance was established around 1.2150.
Breakout: A clear breakout above the neckline, supported by high bullish volume and strong momentum candles, confirmed the pattern.
✅ Pattern Confirmation Checklist:
Confirmation Status
Double touch of support? ✔️
Failed breakdown attempt? ✔️
Breakout above neckline? ✔️
Strong bullish momentum after breakout? ✔️
3. Key Levels and Market Structure
📍 Important Price Levels:
Level Type Price
Support Zone 1.2086
Neckline Resistance ~1.2150
First Target (TP1) 1.2250
Emergency Stop Loss (SL) Below 1.2086
Support:
Well-defined, tested twice without significant breach.
Resistance:
Clean neckline breakout confirming the bullish reversal.
The 1.2250 level is a logical target because it's the next significant resistance based on previous price reactions.
4. Price Action Post Breakout
After breaking the neckline:
The price rallied aggressively.
A minor flag/consolidation structure is forming just after the breakout — a very typical behavior before continuation.
Buyers appear firmly in control, while sellers are retreating.
This consolidating move increases the probability of the next impulsive move continuing higher toward the 1.2250 TP.
5. Trade Setup Plan
🧩 Entry, TP, and SL Plan:
Component Details
Entry On breakout confirmation or retest of neckline
Take Profit (TP) 1.2250
Stop Loss (SL) Below 1.2086
Risk-Reward Ratio ~2:1 (Ideal setup)
📋 Trade Management:
Risk small: (1%-2% of account per trade)
Move SL to Break-even: once halfway to the target (~1.2200) to secure risk-free trade.
Partial Close: You can close 50% of position near 1.2220 and let the rest run to 1.2250 if you want to manage profits dynamically.
6. Market Psychology Behind the Setup
Double Bottom: Represents exhaustion of sellers and growing confidence among buyers.
Breakout: Indicates a significant shift from supply dominance to demand dominance.
Current Consolidation: Shows that buyers are regrouping, preparing for another wave of upward momentum.
The collective behavior (buying at support, defending after breakout) tells us the bulls are more aggressive now.
7. Possible Alternative Scenarios
Always be aware of risks:
If the price drops back below 1.2086, the bullish structure will be invalidated.
In that case, sellers might regain control and push the price lower toward 1.2000 or even beyond.
News events (like USD economic releases) could add sudden volatility, invalidating the pattern.
⚠️ Stay flexible — patterns offer probability, not certainty.
📊 Overall Strategic Summary:
✅ Pattern Formed: Double Bottom Reversal
✅ Trend Direction: Bullish Bias Confirmed
✅ Entry Signal: Breakout Retest (or continuation breakout)
✅ Target: 1.2250
✅ Risk Management: Tight stop loss under the structure
✅ Market Context: Sentiment shift visible, supported by technical breakout
🔥 Final Pro Tip:
"Double Bottoms work best when they coincide with a strong psychological support zone and are followed by aggressive bullish candles — exactly what we see here. High-quality setups deserve high-quality discipline."
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.