There is quite a mix and match on the USDCHF right now. Few factors indicating a bearish bias and others indicating a potential buy move.

- Market structure: USDCHF has a bearish market structure making LL and LH’s respectively. The trend is bearish and with the market at resistance right now, we can confluence other factors with it to go bearish. The resistance level rests at 0.9070. We might face a fakeout of this resistance and continue down. Unless the resistance is broken out and candles have not retested the resistance become support, we will not change our bias towards buys.

- Trendline: The descending trendline is testing the market at the resistance area. This gives us a two-factor confirmation of the resistance for shorts. Even if this trendline is broken out above, we will need to wait for validation candles and the break of the resistane.

- Retracement: At the resistance level, we have an unconventional retracement region of 50-61.8%. This retracement area becomes strong once it is aligned with trendline test and resistance.

- EMA's: Both the EMA’s are above the current market price, which means they are indicating a bearish bias. Market has also incurred the bearish death cross, which means, the bearish bias has more pressure. EMA 50 might confluence with other factors at the mentioned resistance. If this EMA is tested, then it would be a high probability trade for us to go short.

- RSI/CCI: Both the oscillators had tapped the over-sold range and formed a divergence buy. When both the oscillators form a divergence, the probability of the direction is increased significantly as in this case. The divergence impact is seen to be tearing off at the resistance level. RSI is at 49 and CCI is at an over-bought region of 150.

We can start scaling our short positions on USDCHF at the current level and add few more at the EMA 50 retest. This is a trend continuation trade. Once the market breaks the resistance, we will take the loss and exit the position and wait for a new opportunity.

USDCHF continuing bearish

Aug 04 2021