USDCHF | PERSPECTIVE FOR THE NEW WEEKOur last publication on this pair fetched 247pips profit (see link below for reference purposes); Price action caught within the sandwich of Supply and demand zone (bearish Rectangle) since the Impulse leg that began late April 2020, we continue to see the potential of shorting the USD/CHF pair despite the recent news regarding the COVID-19.
Tendency: Downtrend ( Bearish )
Structure: Bearish Rectangle | Supply and Demand | Trend
Observation: i. Within the Supply and Demand zone, it is observed that price continue to find it difficult to test the Supply zone since Sep. 2020.
ii. Hence, justifying recent Lower Lows as the rejection of 0.92000 level on the 2nd & 11th Nov. 2020 (Double Top) points toward the risk of further decline in the coming week(s).
iii. It is also worthy to note that the little Breakdown of 0.90000 in the previous week hints at the strength of the Sellers at this juncture.
iv. Breakdown and retest of 0.90000 in the following week(s) will open a window for me to add volumes to my Sell positions.
Trading plan: SELL confirmation with a minimum potential profit of 400 pips.
Risk/Reward: 1:4
Potential Duration: 10 to 20 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
