This CHF/USD chart presents a compelling bearish setup, suggesting that the pair may be headed for a decline after facing strong resistance. The price action has followed a technical breakout and retest pattern, with a clear rejection from a well-defined resistance level.
Traders looking for short-selling opportunities should take note of the key price zones, support levels, and overall market structure before making a move. Let’s break it down in detail.
🔍 Chart Breakdown: What’s Happening?
1️⃣ Falling Wedge Breakout & Bullish Push
The price was consolidating inside a falling wedge, a pattern that typically signals an eventual breakout to the upside.
The breakout led to a strong bullish move, pushing the price toward a well-established resistance zone around 1.1414.
After breaking out, the pair made a significant upward run before stalling at this key resistance.
2️⃣ Key Resistance Level Holding Strong
The price touched the resistance zone but failed to break above it.
This rejection indicates that sellers are stepping in, absorbing the buying pressure.
The market is showing early signs of bearish momentum, hinting at a potential downtrend.
3️⃣ Projected Bearish Move: Lower Targets in Sight
If the current rejection holds, the price is likely to fall toward the nearest support levels:
✅ TP 1 (Take Profit 1): 1.1271 → First major support level, likely to be tested soon.
✅ TP 2 (Take Profit 2): 1.1201 → A deeper retracement if selling pressure increases.
✅ TP 3 (Take Profit 3): 1.1055 → Final downside target if the bearish trend extends further.
4️⃣ Stop Loss Placement – Risk Management
To manage risk, the ideal stop loss should be placed slightly above the resistance level at 1.1414.
This protects against potential false breakouts and unexpected market shifts.
📉 Trade Strategy – How to Approach This Setup?
🔸 Entry Point: Look for a confirmed rejection of the resistance level (e.g., bearish candlestick patterns like engulfing, shooting star, or pin bars).
🔸 Stop Loss: Place above 1.1414 to avoid getting caught in a short squeeze.
🔸 Take Profit Targets:
First TP at 1.1271
Second TP at 1.1201
Final TP at 1.1055 for extended downside moves
⚠️ Important Notes for Traders:
✔ Wait for Confirmation: Don’t rush into a short trade. Look for a strong bearish candle closure or a retest before entering.
✔ Be Aware of News Events: Economic releases, interest rate decisions, and major USD-related news can impact price movement.
✔ Monitor Market Sentiment: If USD strengthens, this setup is even more likely to play out.
🧐 Final Thoughts – High Probability Short Setup?
✅ Why This Trade Looks Strong:
The technical pattern is playing out perfectly, with a clear resistance rejection.
The risk-to-reward ratio is favorable, with well-defined entry, stop loss, and take profit levels.
The overall market structure supports a potential downside move if price continues respecting resistance.
📢 Bottom Line: If price remains below the 1.1414 resistance, this trade setup could provide an excellent opportunity for short-sellers targeting lower support levels. 🚀 Stay patient and wait for confirmation before pulling the trigger!
Traders looking for short-selling opportunities should take note of the key price zones, support levels, and overall market structure before making a move. Let’s break it down in detail.
🔍 Chart Breakdown: What’s Happening?
1️⃣ Falling Wedge Breakout & Bullish Push
The price was consolidating inside a falling wedge, a pattern that typically signals an eventual breakout to the upside.
The breakout led to a strong bullish move, pushing the price toward a well-established resistance zone around 1.1414.
After breaking out, the pair made a significant upward run before stalling at this key resistance.
2️⃣ Key Resistance Level Holding Strong
The price touched the resistance zone but failed to break above it.
This rejection indicates that sellers are stepping in, absorbing the buying pressure.
The market is showing early signs of bearish momentum, hinting at a potential downtrend.
3️⃣ Projected Bearish Move: Lower Targets in Sight
If the current rejection holds, the price is likely to fall toward the nearest support levels:
✅ TP 1 (Take Profit 1): 1.1271 → First major support level, likely to be tested soon.
✅ TP 2 (Take Profit 2): 1.1201 → A deeper retracement if selling pressure increases.
✅ TP 3 (Take Profit 3): 1.1055 → Final downside target if the bearish trend extends further.
4️⃣ Stop Loss Placement – Risk Management
To manage risk, the ideal stop loss should be placed slightly above the resistance level at 1.1414.
This protects against potential false breakouts and unexpected market shifts.
📉 Trade Strategy – How to Approach This Setup?
🔸 Entry Point: Look for a confirmed rejection of the resistance level (e.g., bearish candlestick patterns like engulfing, shooting star, or pin bars).
🔸 Stop Loss: Place above 1.1414 to avoid getting caught in a short squeeze.
🔸 Take Profit Targets:
First TP at 1.1271
Second TP at 1.1201
Final TP at 1.1055 for extended downside moves
⚠️ Important Notes for Traders:
✔ Wait for Confirmation: Don’t rush into a short trade. Look for a strong bearish candle closure or a retest before entering.
✔ Be Aware of News Events: Economic releases, interest rate decisions, and major USD-related news can impact price movement.
✔ Monitor Market Sentiment: If USD strengthens, this setup is even more likely to play out.
🧐 Final Thoughts – High Probability Short Setup?
✅ Why This Trade Looks Strong:
The technical pattern is playing out perfectly, with a clear resistance rejection.
The risk-to-reward ratio is favorable, with well-defined entry, stop loss, and take profit levels.
The overall market structure supports a potential downside move if price continues respecting resistance.
📢 Bottom Line: If price remains below the 1.1414 resistance, this trade setup could provide an excellent opportunity for short-sellers targeting lower support levels. 🚀 Stay patient and wait for confirmation before pulling the trigger!
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.
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.